17 Dec 2014
F M CUSTODIANS LTD as custodial trustee of MIDLANDS MORTGAGE TRUST v TIMOTHY STEPHEN BARTELLS [2014] NZHC 3214
- Citation
- [2014] NZHC 3214
- Court
- High Court
The proposal was rejected because it failed to respect statutory bankruptcy priorities by lumping separate and joint (partnership) creditors contrary to ss279 and 333(4)(a), the terms were not reasonable nor calculated to benefit the general body of creditors (s333(3)(b)), the trustee could not have the court approve a substantive alteration to the proposal post-meeting (s333(6)), and public interest in preventing a reckless debtor from continuing as a free agent made bankruptcy the appropriate response (s333(3)(c) and court's discretion under Insolvency Act).