In the matter of Fearndale Holdings Pty Ltd (in liq) (recs & mgrs apptd) [2020] NSWSC 901

In the matter of Fearndale Holdings Pty Ltd (in liq) (recs & mgrs apptd) [2020] NSWSC 901

Mr Cook, as voluntary administrator and liquidator, is entitled to remuneration, costs, and proper disbursements from the proceeds of sale of trust property, where such work was necessary, complex, properly performed, and achieved substantial benefit for creditors/trust beneficiaries. The quantum of $1,213,420.00 (exclusive of GST) claimed is reasonable in the circumstances and is approved by the Court pursuant to section 60-10(1)(c) of the Insolvency Practice Schedule (Corporations), given the absence of opposition and the extensive work required in a highly contested administration.

Jurisdiction
Australia
Judgment Date
15 July 2020
Procedural Posture
Application for Remuneration Determination in External Administration/liquidation / Final Determination
Outcome
Orders made for determination and payment of remuneration, costs, and expenses to Mr Cook from trust property; costs of application to be costs in external administration.
Legal Topics
['voluntary Administration' 'liquidator Remuneration' 'court Approval of Remuneration' 'trust Property and Indemnity' 'salvage Claim' 'priority of Claims' 'external Administration']
['corporations' 'equity' 'trusts' 'insolvency'] ['voluntary Administration' 'liquidator Remuneration' 'court Approval of Remuneration' 'trust Property and Indemnity' 'salvage Claim' 'priority of Claims' 'external Administration']

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Procedural Posture

Application for Remuneration Determination in External Administration/liquidation / Final Determination

Legal Issues

  1. 1 ['Whether Mr Cook, as voluntary administrator, receiver, and liquidator, is entitled to remuneration and expenses from the trust property for work undertaken in connection with the administration, liquidation, and sale of trust property.' 'What quantum of remuneration, costs, and expenses is properly payable to Mr Cook from the trust property for the period specified.' 'What principles govern the priority, entitlement, and method of payment for such remuneration and costs from trust assets.']

Ratio Decidendi

Mr Cook, as voluntary administrator and liquidator, is entitled to remuneration, costs, and proper disbursements from the proceeds of sale of trust property, where such work was necessary, complex, properly performed, and achieved substantial benefit for creditors/trust beneficiaries. The quantum of $1,213,420.00 (exclusive of GST) claimed is reasonable in the circumstances and is approved by the Court pursuant to section 60-10(1)(c) of the Insolvency Practice Schedule (Corporations), given the absence of opposition and the extensive work required in a highly contested administration.

Court Disposition

Orders made for determination and payment of remuneration, costs, and expenses to Mr Cook from trust property; costs of application to be costs in external administration.

Orders

  • ['Determination pursuant to section 60-10(1)(c) IPS that Mr Cook is entitled to remuneration for necessary work properly performed in relation to the external administration for the period 5 May 2018 to 22 May 2020 in the sum of $1,213,420.00 (exclusive of GST).' 'Costs of Mr Cook (Liquidator) in the Amended...