ANCA PROPERTIES LIMITED V MA BURT & P M BURT HC NAP CIV-2011-441-411

ANCA PROPERTIES LIMITED V MA BURT & P M BURT HC NAP CIV-2011-441-411

Although the proposal obtained the requisite creditor votes, the court refused approval under s333(3)(c) because inadequate disclosure, the complexity of interposed companies and trusts, the risk to the commercial community and the need for independent investigation made it inexpedient to approve a minimal 1.5 cents in the dollar proposal; accordingly the court adjudicated both applicants bankrupt.

Citation
openlaw-d39d8626_2f27_429e_87a3_48ecd82fabad.pdf
Parties
Judgment Creditor: ANCA PROPERTIES LIMITED; Judgment Debtor: MARK ANTHONY BURT; Judgment Debtor: PENELOPE MARY BURT
Court
High Court
Jurisdiction
New Zealand
Judgment Date
16 November 2011
Procedural Posture
Insolvency Act 2006 Application (creditors' Proposal and Bankruptcy Adjudication) / Applications for Approval of Creditors' Proposal; Alternative Bankruptcy Adjudication Applications Heard
Outcome
Creditors' proposal dismissed; Mark Anthony Burt and Penelope Mary Burt adjudicated bankrupt
Legal Topics
Creditors' Proposal, Adjudication (bankruptcy), Disclosure Obligations, Public Interest/expediency, Personal Guarantees, Asset Structures and Trusts
Insolvency Bankruptcy Trusts Commercial Law Creditors' Proposal Adjudication (bankruptcy) Disclosure Obligations Public Interest/expediency +2 more

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Parties

ANCA PROPERTIES LIMITED

Judgment Creditor

MARK ANTHONY BURT

Judgment Debtor

PENELOPE MARY BURT

Judgment Debtor

Procedural Posture

Insolvency Act 2006 Application (creditors' Proposal and Bankruptcy Adjudication) / Applications for Approval of Creditors' Proposal; Alternative Bankruptcy Adjudication Applications Heard

Legal Issues

  1. 1 Whether Part 5 Sub‑Part 2 requirements were complied with (s327 etc)
  2. 2 Whether the proposal is reasonable and benefits the general body of creditors (s333(3)(b))
  3. 3 Whether it is expedient in the public interest to approve the proposal (s333(3)(c))

Ratio Decidendi

Although the proposal obtained the requisite creditor votes, the court refused approval under s333(3)(c) because inadequate disclosure, the complexity of interposed companies and trusts, the risk to the commercial community and the need for independent investigation made it inexpedient to approve a minimal 1.5 cents in the dollar proposal; accordingly the court adjudicated both applicants bankrupt.

Court Disposition

Creditors' proposal dismissed; Mark Anthony Burt and Penelope Mary Burt adjudicated bankrupt

Orders

  • Order adjudicating Mark Anthony Burt bankrupt timed 16 November 2011 at 3:30 pm
  • Order adjudicating Penelope Mary Burt bankrupt timed 16 November 2011 at 3:32 pm