Re Campbell, Keith Malcolm Ex Parte Metway Leasing Ltd [1996] FCA 627

Re Campbell, Keith Malcolm Ex Parte Metway Leasing Ltd [1996] FCA 627

The adjournment is refused because the creditors lack sufficient information to evaluate the scheme of arrangement, particularly regarding proposed legal proceedings; the trustee's report contains misleading information; and substantial prejudice would result to the petitioning creditor, Metway Leasing, if the scheme proceeded. The Registrar’s decision to grant an adjournment is set aside.

Parties
Debtor: Keith Malcolm Campbell; Petitioning Creditor: Metway Leasing Limited
Jurisdiction
Australia
Judgment Date
04 June 1996
Procedural Posture
Bankruptcy Petition / Review of Registrar's Adjournment Decision
Outcome
Registrar's adjournment decision set aside; adjournment refused
Legal Topics
Sequestration Order, Scheme of Arrangement, Adjournment, Creditor Meeting
Bankruptcy Sequestration Order Scheme of Arrangement Adjournment Creditor Meeting

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Parties

Keith Malcolm Campbell

Debtor

Metway Leasing Limited

Petitioning Creditor

Procedural Posture

Bankruptcy Petition / Review of Registrar's Adjournment Decision

Legal Issues

  1. 1 Whether an adjournment of the bankruptcy petition should be granted to allow consideration of a proposed scheme of arrangement under Part X of the Bankruptcy Act 1966 (Cth)
  2. 2 Whether the proposed scheme of arrangement provides adequate information and reasonable terms for creditors

Ratio Decidendi

The adjournment is refused because the creditors lack sufficient information to evaluate the scheme of arrangement, particularly regarding proposed legal proceedings; the trustee's report contains misleading information; and substantial prejudice would result to the petitioning creditor, Metway Leasing, if the scheme proceeded. The Registrar’s decision to grant an adjournment is set aside.

Court Disposition

Registrar's adjournment decision set aside; adjournment refused

Orders

  • Adjournment refused
  • Registrar's decision set aside