A LIGUORI V GOLDEN FUND LIMITED & ORS, HC AK CIV 2011-404-004878

A LIGUORI V GOLDEN FUND LIMITED & ORS, HC AK CIV 2011-404-004878

The conditions for approval were not met because the trustee's report established the business was not generating sufficient revenue to fund the proposal and evidence of future income or rent concessions was speculative and unproven; accordingly the conditional approval lapsed and the application to approve the compromise was declined.

Citation
openlaw-174df5c6_5d1f_428f_8622_5ee09f37341f.pdf
Parties
Insolvent: A Liguori; Creditor: Golden Fund Limited & Ors
Court
High Court
Jurisdiction
New Zealand
Judgment Date
29 October 2012
Procedural Posture
Insolvency Act 2006 Approval of Proposal / Supplementary Judgment; Assessment of Conditions for Conditional Approval
Outcome
Conditional approval lapsed; application for approval of the compromise declined
Legal Topics
Proposal Approval, Conditional Approval, Business Viability, Trustee Report, Creditor Rights
Insolvency Bankruptcy Civil Procedure Proposal Approval Conditional Approval Business Viability Trustee Report Creditor Rights

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Parties

A Liguori

Insolvent

Golden Fund Limited & Ors

Creditor

Procedural Posture

Insolvency Act 2006 Approval of Proposal / Supplementary Judgment; Assessment of Conditions for Conditional Approval

Legal Issues

  1. 1 Whether conditions for court approval of a debtor's proposal under the Insolvency Act 2006 were satisfied
  2. 2 Whether the court should revisit conditional approval in light of subsequent evidence of future income
  3. 3 Whether the proposed business projections provided sufficient certainty that payments under the proposal would be met

Ratio Decidendi

The conditions for approval were not met because the trustee's report established the business was not generating sufficient revenue to fund the proposal and evidence of future income or rent concessions was speculative and unproven; accordingly the conditional approval lapsed and the application to approve the compromise was declined.

Court Disposition

Conditional approval lapsed; application for approval of the compromise declined

Orders

  • The condition for approval has not been met and lapses
  • Application for approval of the proposal is declined