CROWN MONEY CORPORATION V BRUCE 7 ORS HC AK CIV-2010-404-1922

CROWN MONEY CORPORATION V BRUCE 7 ORS HC AK CIV-2010-404-1922

The court refused to make orders of adjudication at this stage and granted a time‑limited adjournment because (1) statutory requisites for adjudication were met but discretion under ss36–37 permits refusal where it is just and equitable; (2) immediate adjudication would likely collapse ongoing refinancing and bank support, producing fire‑sale outcomes that would prejudice Crown and other creditors more than an adjournment; and (3) there was a realistic prospect of refinancing or asset sales within eight weeks sufficient to repay Crown—accordingly the proper exercise of discretion was to adjourn to 15 October 2010 and require an updating affidavit by 8 October 2010, with costs reserved.

Citation
openlaw-669e85a8_c18c_4ba6_b266_1660333d4f38.pdf
Parties
Judgment Debtor: Robert Ian Bruce; Judgment Debtor: Stephen John Armstrong Mason; Judgment Debtor: John Robert Armstrong Mason; Judgment Debtor: Wayne Ramon Allen; Judgment Debtor: Mark Newall Mason; Judgment Creditor: Crown Money Corporation Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
18 August 2010
Procedural Posture
Insolvency / Bankruptcy (insolvency Act 2006) / Creditor's Application for Adjudication; Interim Judgment on Adjournment Request
Outcome
Application for adjudication adjourned; interim judgment declining adjudication at this stage and fixing a review hearing
Legal Topics
Adjudication, Discretion to Refuse Adjudication, Guarantees, Refinancing, Security Interests, Adjournment, Official Assignee Investigation
Insolvency Bankruptcy Commercial Law Property Law Civil Procedure Adjudication Discretion to Refuse Adjudication Guarantees +4 more

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Parties

Robert Ian Bruce

Judgment Debtor

Stephen John Armstrong Mason

Judgment Debtor

John Robert Armstrong Mason

Judgment Debtor

Wayne Ramon Allen

Judgment Debtor

Mark Newall Mason

Judgment Debtor

Crown Money Corporation Limited

Judgment Creditor

Procedural Posture

Insolvency / Bankruptcy (insolvency Act 2006) / Creditor's Application for Adjudication; Interim Judgment on Adjournment Request

Legal Issues

  1. 1 Whether court should exercise discretion under Insolvency Act 2006 ss13,36,37 to refuse adjudication despite statutory requirements being met
  2. 2 Whether temporary adjournment is justified to permit refinancing/completion of subdivision projects and protect wider creditor and public interests
  3. 3 Whether making orders now would irreparably prejudice prospects of repayment by causing financiers to withdraw support

Ratio Decidendi

The court refused to make orders of adjudication at this stage and granted a time‑limited adjournment because (1) statutory requisites for adjudication were met but discretion under ss36–37 permits refusal where it is just and equitable; (2) immediate adjudication would likely collapse ongoing refinancing and bank support, producing fire‑sale outcomes that would prejudice Crown and other creditors more than an adjournment; and (3) there was a realistic prospect of refinancing or asset sales within eight weeks sufficient to repay Crown—accordingly the proper exercise of discretion was to adjourn to 15 October 2010 and require an updating affidavit by 8 October 2010, with costs reserved.

Court Disposition

Application for adjudication adjourned; interim judgment declining adjudication at this stage and fixing a review hearing

Orders

  • No orders of adjudication made at this stage
  • Proceeding adjourned to 15 October 2010 at 9:00 am for review before Lang J