New Zealand Case Law: Decisions & Judgments

Topic

Secured creditor rights

Legal area

Court

6 May 2015

STEPHEN JOHN EDWARD PACK v ULTRA PROJECTS LIMITED (in liquidation) [2015] NZHC 940

Citation

[2015] NZHC 940
Court

High Court

The Court refused to approve the proposal because the insolvent materially failed to disclose assets (notably a significant debt owing from the SS Pack Family Trust) making the statement of affairs inaccurate, the proposal was not reasonable nor calculated to benefit the general body of creditors given the negligible dividend and uncertainties over secured creditors' net positions, and approval was inexpedient in the public interest due to the applicant's pattern of director negligence and probable risk of repeating harmful conduct; the trustee fee defect was correctable but surplus to these…
10 Dec 2013

WAIPAREIRA INVESTMENTS LIMITED v DAMIEN GRANT and KIRSTEN SMITH as liquidators of West Harbour Holdings Limited (in liq) [2013] NZHC 3281

Citation

[2013] NZHC 3281
Court

High Court

The proof of debt form completed for Waipareira was fundamentally deficient and did not comply with the prescribed Form 2 required by s 305(4); therefore Waipareira did not validly elect to value its security and prove as an unsecured creditor, remained a secured creditor outside the definition of 'creditor' in s 240, reg 22(2) did not apply, the vote purportedly cast on its behalf was of no legal effect, and its security was not surrendered.
15 Feb 2010

A J PARK V NEPRI LIMITED (IN LIQUIDATION) HC AK CIV-2009-404-2629

Citation

openlaw-d7e822bb_627e_4788_ad31_40b87ff249e2.pdf
Court

High Court

Court exercised its s305(10) discretion to permit HSI to withdraw the deemed surrender because HSI's failure to elect was caused by a misunderstanding, there was no established prejudice or significant delay to the liquidation or other creditors, and any disputes about the existence or quantum of the debt and conflicts could be pursued in other proceedings.
15 Dec 2009

THE HEALY HOLMBERG TRADING PARTNERSHIP V DAMIEN GRANT AND STEPHEN KHOV HC AK CIV 2009-404-002279

Citation

openlaw-564c5a50_2123_4105_afae_b8bb783481ee.pdf
Court

High Court

Court found respondents' rates and hours inadequately justified, established misconduct in overcharging and improper payments to Waterstone Recovery Ltd, concluded disbursements to that related contractor were reviewable and not payable given lack of evidence of appropriate conduct, fixed remuneration for work to date at NZD 20,000 plus GST, directed refunds of specified amounts to be repaid, fixed future hourly rates at NZD 180/85/50 plus GST, adjourned security accounting issue, and dismissed application to remove liquidators for lack of s286 notice.
14 Sept 2009

LIM V MORNING STAR (ST LUKES GARDEN APARTMENTS) LIMITED HC AK CIV 2009-404-3279

Citation

openlaw-b2679026_e5e9_42ab_aabd_0a94de341615.pdf
Court

High Court

Non-compliance with the statutory demand and the company's admitted insolvency satisfied the statutory prerequisites for liquidation; the primary rule favouring unsecured creditors was not displaced because the secured creditor's asserted detriment did not outweigh the plaintiffs' prima facie entitlement given the secured creditor had available remedies (possession, receiver appointment, or paying the judgment) and had chosen not to pay; accordingly the Court ordered liquidation and appointed the Official Assignee as liquidator.

New Zealand Case Law

STEPHEN JOHN EDWARD PACK v ULTRA PROJECTS LIMITED (in liquidation) [2015] NZHC 940

WAIPAREIRA INVESTMENTS LIMITED v DAMIEN GRANT and KIRSTEN SMITH as liquidators of West Harbour Holdings Limited (in liq) [2013] NZHC 3281

A J PARK V NEPRI LIMITED (IN LIQUIDATION) HC AK CIV-2009-404-2629

THE HEALY HOLMBERG TRADING PARTNERSHIP V DAMIEN GRANT AND STEPHEN KHOV HC AK CIV 2009-404-002279

LIM V MORNING STAR (ST LUKES GARDEN APARTMENTS) LIMITED HC AK CIV 2009-404-3279