Lehman Brothers Australia Ltd, in the matter of Lehman Brothers Australia Ltd (in liq) [2013] FCA 486

Lehman Brothers Australia Ltd, in the matter of Lehman Brothers Australia Ltd (in liq) [2013] FCA 486

The scheme of arrangement meets the requirements for convening meetings under s 411 as proper disclosure is made, class constitution is appropriate, releases to third parties are supported by consideration, and the procedural orders will facilitate the efficient resolution of creditors' claims.

Parties
First Plaintiff: Lehman Brothers Australia Limited (in liquidation) ACN 066 797 760; Second Plaintiff: Marcus William Ayres; Third Plaintiff: Stephen James Parbery
Jurisdiction
Australia
Judgment Date
28 May 2013
Procedural Posture
Application / Orders for Convening Scheme Meetings and Approval of Deed of Release
Outcome
Scheme meetings convened; Deed of Release approved; procedural orders granted.
Legal Topics
Scheme of Arrangement, Classes of Creditors, Releases to Third Parties, Creditor Meetings, Liquidator Approval
Corporations Law Scheme of Arrangement Classes of Creditors Releases to Third Parties Creditor Meetings Liquidator Approval

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Parties

Lehman Brothers Australia Limited (in liquidation) ACN 066 797 760

First Plaintiff

Marcus William Ayres

Second Plaintiff

Stephen James Parbery

Third Plaintiff

Procedural Posture

Application / Orders for Convening Scheme Meetings and Approval of Deed of Release

Legal Issues

  1. 1 Whether to approve scheme meetings under s 411 Corporations Act 2001 (Cth)
  2. 2 Whether proposed scheme contains proper class structure for creditors
  3. 3 Whether releases to insurers and related parties are permissible

Ratio Decidendi

The scheme of arrangement meets the requirements for convening meetings under s 411 as proper disclosure is made, class constitution is appropriate, releases to third parties are supported by consideration, and the procedural orders will facilitate the efficient resolution of creditors' claims.

Court Disposition

Scheme meetings convened; Deed of Release approved; procedural orders granted.

Orders

  • Approval of entry into Deed of Release with QBE Insurance by liquidators.
  • Direction to convene meetings of separate classes of creditors for scheme consideration.