New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Part 14 compromise (companies act 1993)

Legal area

Court

7 Sept 2016

ADVICEWISE PEOPLE LTD AND ORS v TRENDS PUBLISHING INTERNATIONAL LTD [2016] NZHC 2119

Citation

[2016] NZHC 2119
Court

High Court

The compromise was set aside because the proponent deliberately structured the creditor meeting to include insider creditors who would not participate in distributions, thereby manufacturing the statutory 75% in value majority and unfairly prejudicing dissenting creditors; where legal rights or economic interests are so dissimilar that creditors cannot meaningfully consult together they should be placed in separate classes and the Court will grant relief under s 232(3) to prevent such manipulation.
26 Aug 2014

PHARMA PAC LIMITED v LEONARD & ANOR [2014] NZHC 2023

Citation

[2014] NZHC 2023
Court

High Court

The guarantees signed in the Trading Agreement were unlimited as to amount and not capped by the stated $5,000 credit limit; the Trading Agreement and Supply Agreement operate cumulatively; the defendants put forward no arguable equitable set-off because the evidence did not establish a breach of the price review mechanism or quantify loss; the Part 14 compromise did not extinguish the guarantors' independent obligation (they had agreed to be treated as principal debtors); accordingly there is no real defence and summary judgment is entered for the plaintiff for $203,462.67.