28 Jun 2006
RE NU-WEST NATURAL PRODUCTS CORP LTD
- Citation
- RE NU-WEST NATURAL PRODUCTS CORP LTD
- Court
- Court of First Instance
- Case number
- HCCW293/2006
The court dismissed the validation application because the company could not be shown to be solvent on a cashflow/liquidity test, and there was clear evidence of diversion of company funds and business to a new company established by the 1st respondent; granting validation would likely deplete company assets to the prejudice of the petitioner (a 50% shareholder) and a major creditor (Nu-West US), so the court exercised its discretion to refuse relief under s.182 and ordered costs against the 1st respondent.