HEARN EX PARTE BUNNINGS LIMITED HC AK CIV 2010-404-002157

HEARN EX PARTE BUNNINGS LIMITED HC AK CIV 2010-404-002157

The court approved the debtor's proposal because the statutory notice and voting requirements were satisfied, the creditors approved by requisite majorities, the proposal (15 cents in the dollar, initial 10 cent payment available) is realistic and advantageous to creditors given the debtor's indebtedness and employment prospects, and s 334(1) precludes further cost claims; the adjudication application was withdrawn with no costs ordered.

Citation
openlaw-aefbbbdd_b893_41c4_9773_a768f542dacf.pdf
Parties
Judgment Debtor: Warwick Arthur Hearn; Applicant Trustee: John Andrew Reginald Cox; Judgment Creditor: Bunnings Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 May 2010
Procedural Posture
Application for Approval of Debtor's Proposal Under Insolvency Act 2006 / Approval Hearing
Outcome
Proposal approved; adjudication application withdrawn; no order as to costs.
Legal Topics
Proposal Approval, Creditors' Meeting and Voting, Adjudication for Bankruptcy, Costs and Expenses
Insolvency Bankruptcy Civil Procedure Proposal Approval Creditors' Meeting and Voting Adjudication for Bankruptcy Costs and Expenses

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Parties

Warwick Arthur Hearn

Judgment Debtor

John Andrew Reginald Cox

Applicant Trustee

Bunnings Limited

Judgment Creditor

Procedural Posture

Application for Approval of Debtor's Proposal Under Insolvency Act 2006 / Approval Hearing

Legal Issues

  1. 1 Whether the application could be amended to be by the trustee
  2. 2 Whether statutory notice and voting requirements under Part 5 Subpart 2 were satisfied
  3. 3 Whether the proposal is advantageous to creditors and should be approved

Ratio Decidendi

The court approved the debtor's proposal because the statutory notice and voting requirements were satisfied, the creditors approved by requisite majorities, the proposal (15 cents in the dollar, initial 10 cent payment available) is realistic and advantageous to creditors given the debtor's indebtedness and employment prospects, and s 334(1) precludes further cost claims; the adjudication application was withdrawn with no costs ordered.

Court Disposition

Proposal approved; adjudication application withdrawn; no order as to costs.

Orders

  • Application dated 9 March 2010 amended to be an application by John Andrew Reginald Cox, the trustee
  • The proposal by Warwick Arthur Hearn to his creditors dated 22 February 2010 is approved