27 Sept 2012
HERBERT V NEW ZEALAND GUARDIAN TRUST COMPANY LIMITED & ORS COA CA701/2011
- Citation
- COA CA701/2011
- Court
- Court of Appeal
The Court refused approval because the proposal offered a derisory return to creditors, provided unexplained and preferential benefit to secured creditors by maintaining mortgage payments without evidencing funding or justification, and therefore was neither reasonable nor calculated to benefit the general body of creditors; given the absence of meaningful recovery and unexplained features, the Official Assignee should review the insolvency, so the proposal was rightly declined under s333(3)(b) and (c).