M Webster Holdings Pty Limited (administrators appointed) v Specific Freight Pty Limited [2017] FCA 269

M Webster Holdings Pty Limited (administrators appointed) v Specific Freight Pty Limited [2017] FCA 269

It is appropriate to direct that administrators are justified in selling the goods in the ordinary course of business as proposed, given that the regime for setting aside proceeds and notifying suppliers provides adequate protection and balances urgency with suppliers' interests.

Parties
First Plaintiff: M Webster Holdings Pty Limited ACN 003 766 925 (administrators appointed); Second Plaintiffs: Geoffrey and Andrew Barnden in their capacities as joint and several voluntary administrators of M Webster Holdings Pty Limited (administrators appointed) ACN 003 766 925; Defendant: Specific Freight Pty Limited ACN 006 664 124
Jurisdiction
Australia
Judgment Date
02 March 2017
Procedural Posture
Corporations and Corporate Insolvency / Application for Disposal of Goods Under S 442 C(2) of Corporations Act 2001 (cth); Urgent Hearing; Orders Made
Outcome
Application granted; orders made authorising sale of goods, setting aside of sale proceeds fund, notification to suppliers, and regime for claims.
Legal Topics
Voluntary Administration, Disposal of Company Property, Retention of Title, Security Interests, Storage Liens, Sale of Goods, Distribution of Sale Proceeds
Corporations Law Insolvency Law Commercial Law Voluntary Administration Disposal of Company Property Retention of Title Security Interests Storage Liens +2 more

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Parties

M Webster Holdings Pty Limited ACN 003 766 925 (administrators appointed)

First Plaintiff

Geoffrey and Andrew Barnden in their capacities as joint and several voluntary administrators of M Webster Holdings Pty Limited (administrators appointed) ACN 003 766 925

Second Plaintiffs

Specific Freight Pty Limited ACN 006 664 124

Defendant

Procedural Posture

Corporations and Corporate Insolvency / Application for Disposal of Goods Under S 442 C(2) of Corporations Act 2001 (cth); Urgent Hearing; Orders Made

Legal Issues

  1. 1 Whether administrators are justified in disposing of goods held by freight forwarder in the ordinary course of business
  2. 2 Whether suppliers with retention of title clauses must be protected in proceeds of sale
  3. 3 Arrangements for suppliers to claim against sale proceeds fund

Ratio Decidendi

It is appropriate to direct that administrators are justified in selling the goods in the ordinary course of business as proposed, given that the regime for setting aside proceeds and notifying suppliers provides adequate protection and balances urgency with suppliers' interests.

Court Disposition

Application granted; orders made authorising sale of goods, setting aside of sale proceeds fund, notification to suppliers, and regime for claims.

Orders

  • Leave granted to file amended originating process.
  • Specific Freight to make goods available to first plaintiff within defined periods as per orders.