BANK OF NEW ZEALAND LIMITED AND ORS V PG SOUTHAM HC AK CIV-2010-404-1509

BANK OF NEW ZEALAND LIMITED AND ORS V PG SOUTHAM HC AK CIV-2010-404-1509

The court approved the proposal because Sub‑Part 2 procedural requirements were met, a substantial majority of creditors voted in favour, the proposal is reasonable and calculated to benefit the general body of creditors (providing a materially better recovery than bankruptcy), and the s333(4) requirements regarding priority payments and costs have been satisfied; accordingly it is expedient to approve under s333.

Citation
openlaw-e19b75a9_d05a_4f37_b349_1a1dfd9ea45e.pdf
Parties
Insolvent: Paul Grant Southam; Provisional Trustee: Christine Liggins; Creditor: Bank of New Zealand Limited; Creditor: Chesters Plumbing & Bathroom Centre Limited; Creditor: Nick Letica Building Supplies Limited; Creditor: Fletcher Distribution Limited; Creditor: Reece New Zealand Limited; Creditor: Fleet Card NZ Limited; Creditor: Fleetpartners NZ Trustee Limited; Creditor: GE Finance and Insurance
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 May 2010
Procedural Posture
Insolvency Act 2006 Proposal Approval / Application Under S333 for Court Approval Following Creditors' Meeting
Outcome
Application granted; creditors' proposal approved.
Legal Topics
Proposal Approval Under S333, Creditors' Meeting Voting, Reasonableness Test for Proposals, Priority Payments and Trustee Fees
Insolvency Bankruptcy Civil Procedure Proposal Approval Under S333 Creditors' Meeting Voting Reasonableness Test for Proposals Priority Payments and Trustee Fees

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Parties

Paul Grant Southam

Insolvent

Christine Liggins

Provisional Trustee

Bank of New Zealand Limited

Creditor

Chesters Plumbing & Bathroom Centre Limited

Creditor

Nick Letica Building Supplies Limited

Creditor

Fletcher Distribution Limited

Creditor

Reece New Zealand Limited

Creditor

Fleet Card NZ Limited

Creditor

Fleetpartners NZ Trustee Limited

Creditor

GE Finance and Insurance

Creditor

Procedural Posture

Insolvency Act 2006 Proposal Approval / Application Under S333 for Court Approval Following Creditors' Meeting

Legal Issues

  1. 1 Whether Sub‑Part 2 procedural requirements were complied with
  2. 2 Whether the terms of the proposal are reasonable and calculated to benefit the general body of creditors
  3. 3 Whether it is expedient to approve the proposal

Ratio Decidendi

The court approved the proposal because Sub‑Part 2 procedural requirements were met, a substantial majority of creditors voted in favour, the proposal is reasonable and calculated to benefit the general body of creditors (providing a materially better recovery than bankruptcy), and the s333(4) requirements regarding priority payments and costs have been satisfied; accordingly it is expedient to approve under s333.

Court Disposition

Application granted; creditors' proposal approved.

Orders

  • Leave granted to amend application so it is by provisional trustee Christine Liggins
  • Approval given to the creditors' proposal dated 18 March 2010 pursuant to s333 Insolvency Act 2006