New Zealand Case Law: Decisions & Judgments

Topic

Creditors' proposal

Legal area

Court

31 Mar 2022

BALDOCK v ASB BANK LTD & ORS [2022] NZHC 637

Citation

[2022] NZHC 637
Court

High Court

The Court approved the proposal because the statutory voting and notice requirements were satisfied (with minor formal defects corrected under s333(6)), the proposal was accepted by the requisite majority of creditors and is objectively reasonable and beneficial to the general body of creditors as supported by the trustee's report, and there were no priority debts or other reasons making approval inexpedient under s333(3).
15 Mar 2021

RE SCOTT [2021] NZHC 518

Citation

[2021] NZHC 518
Court

High Court

Because the amended joint proposal complied with the statutory form and procedural requirements, was supported by a majority of creditors both numerically and by value, no s333(3) grounds for refusal were present, and any omission in service detail was immaterial given the improved benefit to creditors, the court approved the creditors' proposal.
15 Jul 2020

McNAIR v ASB BANK LIMITED [2020] NZHC 1707

Citation

[2020] NZHC 1707
Court

High Court

The proposal was approved because it complied with statutory form and procedural requirements, notice was given and acknowledged, all creditors voted in favour (by number and value), the proposal as modified increases returns to creditors (approximately 80% of indebtedness) and no grounds under s333(3) for refusal were shown.
12 Mar 2020

EDMONDS v ASB BANK LIMITED [2020] NZHC 496

Citation

[2020] NZHC 496
Court

High Court

Although there was doubt about the formal ability to approve a joint proposal and the notice was given by email without the statutory agreement required, the Court approved the proposal because it otherwise complied with the Act, was supported by the requisite majority of creditors and was calculated to benefit the general body of creditors; approval was granted as a case-specific exercise of discretion and not as a precedent for future cases.
10 Mar 2020

DONALD v GOLDPINE INDUSTRIES LIMITED [2020] NZHC 450

Citation

[2020] NZHC 450
Court

High Court

Because the Trustee proved actual receipt of the proposal by all creditors, the proposal complied with statutory form, proposed full payment over three years and no creditors opposed it, the Court approved the creditors' proposal under the Insolvency Act.
10 Mar 2020

BALLMAN v ASB BANK LIMITED [2020] NZHC 456

Citation

[2020] NZHC 456
Court

High Court

The proposal is approved because it is in the correct statutory form, is reasonable, will return 100 cents in the dollar over three years to creditors, and the unanimous creditor votes and confirmed receipt rendered any service-by-email concerns immaterial.
18 Feb 2020

HENSHAW v ANZ NATIONAL BANK LIMITED [2020] NZHC 201

Citation

[2020] NZHC 201
Court

High Court

The Court approved the creditors' proposal because it was in proper form, was approved by the requisite majority, will return 100 cents in the dollar to creditors, and the Court exercised its discretion to overlook service anomalies after the trustee remedied and explained them; approval does not set a precedent that email service alone constitutes good service without compliance with s224(1).
11 Feb 2020

HANTOM v NZCU BAYWIDE [2020] NZHC 126 .

Citation

[2020] NZHC 126
Court

High Court

Because all affected creditors (other than an intentionally unserved secured creditor) received notice by email, responded and approved the proposal, and the failure to serve the secured creditor was a deliberate decision accepted would leave that creditor unbound, the Court exercised its discretion to treat service requirements as satisfied in the circumstances and granted approval of the creditors' proposal; the risk of using email notice without express consent lies with the insolvent.
22 Feb 2019

STUFF LTD v ARNOLD [2019] NZHC 240 .

Citation

[2019] NZHC 240
Court

High Court

Leave to file an opposition out of time was refused because the debtor had no reasonable prospect of successfully opposing adjudication: she had sworn she could meet any costs award, provided no full and credible explanation for the apparent change in ability to pay, offered no viable creditors' proposal, and the inability to continue as a director is a standard consequence of bankruptcy which does not make adjudication unjust or inequitable; accordingly the creditor's adjudication application succeeded.
23 Oct 2014

SNEDDEN SOLICITORS NOMINEE COMPANY LIMITED v P R FINLAY AND D M GHALEH [2014] NZHC 2606

Citation

[2014] NZHC 2606
Court

High Court

The adjudication was granted because the judgments remained unpaid, prior applications to set aside the bankruptcy notices and appeals had been dismissed on their merits, the oppositions raised no new or meritorious grounds, the creditors' proposal was last-minute and unsupported (omitting a material creditor/debt), and there was clear evidence of insolvency; accordingly the Court adjudicated the debtors bankrupt and awarded costs to the judgment creditor.