RED BLACK EVENTS LIMITED HC AK CIV 2009-404-003252

RED BLACK EVENTS LIMITED HC AK CIV 2009-404-003252

The court declined to finally approve the compromise at this stage because the applicant had not sufficiently demonstrated that affected creditors received adequate notice and that key operational and allocation matters were resolved; the court therefore ordered specific further affidavits, service on creditors and relisting for further call so that creditors can be properly informed and heard before a final determination.

Citation
openlaw-5eb6a37a_8c9c_44e3_8a57_4a05826bf29e.pdf
Parties
Applicant/company: Red Black Events Limited; Affected Creditors: Unsecured creditors; Compromise Manager and Meeting Chair: Glenn Andrew Walker; Director and Deponent: Richard Wood
Court
High Court
Jurisdiction
New Zealand
Judgment Date
25 June 2009
Procedural Posture
Application for Court Approval of Creditor Compromise Under Companies Act 1993 S236 / Interim Judgment — Matter Adjourned for Further Call on 9 July 2009 Pending Further Affidavits and Service
Outcome
Interim orders made requiring further affidavits and service; application relisted for further call on 9 July 2009 at 10:00am; final determination deferred pending compliance with directions
Legal Topics
Creditor Compromise, Scheme of Arrangement, Service and Notice, Compromise Manager, Part 14 Companies Act, S236 Companies Act 1993
Companies Law Insolvency Civil Procedure Creditor Compromise Scheme of Arrangement Service and Notice Compromise Manager Part 14 Companies Act +1 more

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Parties

Red Black Events Limited

Applicant/company

Unsecured creditors

Affected Creditors

Glenn Andrew Walker

Compromise Manager and Meeting Chair

Richard Wood

Director and Deponent

Procedural Posture

Application for Court Approval of Creditor Compromise Under Companies Act 1993 S236 / Interim Judgment — Matter Adjourned for Further Call on 9 July 2009 Pending Further Affidavits and Service

Legal Issues

  1. 1 Whether notice to unsecured creditors was adequate and properly evidenced
  2. 2 Completeness and transparency of creditor schedule and voting record
  3. 3 How initial payment of $25,000 will be applied among creditors

Ratio Decidendi

The court declined to finally approve the compromise at this stage because the applicant had not sufficiently demonstrated that affected creditors received adequate notice and that key operational and allocation matters were resolved; the court therefore ordered specific further affidavits, service on creditors and relisting for further call so that creditors can be properly informed and heard before a final determination.

Court Disposition

Interim orders made requiring further affidavits and service; application relisted for further call on 9 July 2009 at 10:00am; final determination deferred pending compliance with directions

Orders

  • Company to file and serve further affidavits addressing specified matters in paragraph [10] including fuller creditor schedule and proof of notice (affidavit of Richard Wood)
  • Compromise Manager (Glenn Andrew Walker) to file affidavit on operational detail of scheme including application of $25,000, repayment mechanics, creditor rights post-moratorium, and estimate of Compromise Manager's costs