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.