22 Aug 2012
REYNOLDS V JAMES HC AK CIV-2011-404-2869
- Citation
- openlaw-e84df4e8_ee5b_4477_8b75_33d2ab0ffb02.pdf
- Court
- High Court
The Court held the general security agreement was voidable under s 293 insofar as it secured past debts and was also voidable under s 292 insofar as it would give Mr James priority over other claimants for post-22 May 2009 claims. The June 2009 payments of $60,904 were voidable under s 292, but the liquidator's claim for recovery of that sum was dismissed because Mr James had, after liquidation and with the liquidators' acquiescence, paid higher-priority liquidation expenses (liquidators' remuneration and litigation costs) totalling more than the preferential payments, thereby removing the pr…