Quintis Limited, in the matter of Quintis Limited (subject to deed of company arrangement) (receivers and managers appointed) [2018] FCA 1400

Quintis Limited, in the matter of Quintis Limited (subject to deed of company arrangement) (receivers and managers appointed) [2018] FCA 1400

The Court was satisfied that the statutory preconditions for convening the scheme meeting under s 411 of the Corporations Act had been met, the explanatory statement contained all material information, major creditors were likely to support the scheme, and KordaMentha’s expert report indicated the scheme would provide a better return than liquidation. Orders were therefore made to convene the meeting and approve the explanatory statement.

Jurisdiction
Australia
Judgment Date
04 September 2018
Procedural Posture
Corporate Insolvency/scheme of Arrangement / Application for Orders to Convene Meeting of Creditors
Outcome
Orders made for convening scheme creditors' meeting and approving meeting materials
Legal Topics
['scheme of Arrangement' 'deed of Company Arrangement' 'secured Creditors Meeting' 'recapitalisation' 'external Administration']
['corporations Law' 'insolvency' 'commercial Law'] ['scheme of Arrangement' 'deed of Company Arrangement' 'secured Creditors Meeting' 'recapitalisation' 'external Administration']

Case Brief

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Procedural Posture

Corporate Insolvency/scheme of Arrangement / Application for Orders to Convene Meeting of Creditors

Legal Issues

  1. 1 ['Whether statutory preconditions for convening a creditors’ meeting under a scheme of arrangement are satisfied' 'Whether the explanatory statement meets legislative requirements' 'Whether the proposed scheme is likely to be approved at a second court hearing']

Ratio Decidendi

The Court was satisfied that the statutory preconditions for convening the scheme meeting under s 411 of the Corporations Act had been met, the explanatory statement contained all material information, major creditors were likely to support the scheme, and KordaMentha’s expert report indicated the scheme would provide a better return than liquidation. Orders were therefore made to convene the meeting and approve the explanatory statement.

Court Disposition

Orders made for convening scheme creditors' meeting and approving meeting materials

Orders

  • ['The plaintiffs to convene a meeting of Scheme Creditors for consideration of the scheme of arrangement' 'The meeting to be held 27 September 2018 at Allens, Sydney' 'Shaun Robert Fraser (or Jason Preston) appointed chairman of the meeting' 'Documents for the meeting approved for distribution as ordered' 'Scheme...