In the matter of Emu Group Pty Ltd [2020] NSWSC 602

In the matter of Emu Group Pty Ltd [2020] NSWSC 602

While there may be a serious issue to be tried, the balance of convenience does not favour restraining the meeting. Delaying will generate wasted costs. The plaintiff's ability to replace the external administrator remains available after liquidation. Immediate appointment of a liquidator is desirable as all creditors have indicated support for such an appointment and no deed of company arrangement has been proposed.

Jurisdiction
Australia
Judgment Date
15 May 2020
Procedural Posture
Application in Voluntary Administration Proceedings / Interlocutory Application for Injunction Prior to Second Creditors' Meeting
Outcome
Application to restrain the second meeting of creditors dismissed.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' 'proof of Debt' 'replacement of Administrator' 'appointment of Liquidator']
['corporations Law' 'insolvency'] ['voluntary Administration' 'second Meeting of Creditors' 'proof of Debt' 'replacement of Administrator' 'appointment of Liquidator']

Case Brief

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Procedural Posture

Application in Voluntary Administration Proceedings / Interlocutory Application for Injunction Prior to Second Creditors' Meeting

Legal Issues

  1. 1 ['Whether to restrain the second meeting of creditors from proceeding' "Whether plaintiff's interests are prejudiced by limitation of proof of debt to $1 for voting purposes" 'Whether balance of convenience favours delay in appointing a liquidator']

Ratio Decidendi

While there may be a serious issue to be tried, the balance of convenience does not favour restraining the meeting. Delaying will generate wasted costs. The plaintiff's ability to replace the external administrator remains available after liquidation. Immediate appointment of a liquidator is desirable as all creditors have indicated support for such an appointment and no deed of company arrangement has been proposed.

Court Disposition

Application to restrain the second meeting of creditors dismissed.

Orders

  • ['Dismiss prayer 2 of the Originating Process.' 'Reserve all questions of costs.' 'Stand the matter over to the Corporations List on 15 June 2020 at 10.00 am.' 'Grant liberty to apply by email to the Chambers of Rees J in respect of any costs order, which may be determined on the papers.']