New Zealand Case Law: Decisions & Judgments

Topic

Conversion of debt to equity

Legal area

Court

2 May 2018

LOOKMAN & 187 BRIDGE TRUSTEES 53 LTD as Trustees of the LOOKMAN FAMILY TRUST v DESIGN ELECTRONICS LTD [2018] NZHC 904

Citation

[2018] NZHC 904
Court

High Court

Design Electronics established an arguable and substantial dispute that the advances were not repayable on demand under the Investment and Shareholding Agreement and, given the balance of convenience, the High Court stayed the winding-up proceeding pending determination of that dispute; issues of contractual meaning (including the five year term, conversion option and "reimbursement model") require further evidence and possibly trial.
13 Mar 2015

QUEENSLAND MAINTENANCE SERVICES (NZ) LIMITED v QUEENSLAND MAINTENANCE SERVICES (PTY) LIMITED (IN LIQUIDATION) [2015] NZHC 450

Citation

[2015] NZHC 450
Court

High Court

The Court concluded there was insufficient evidence of a genuine and substantial dispute: the applicant's and respondent's contemporaneous accounting records and audited financial statements, signed by the director, consistently treated the advances as loans, the promissory note cancellation was recorded and added to loan balances, and the interest position was reflected in the accounts; accordingly the statutory demand was not set aside.
6 Apr 2006

SLAVICH V PACESETTER PRINT GROUP LIMITED AND ANOR HC HAM CIV 2006-419-318

Citation

openlaw-2edaf294_0cc6_4f78_bbbc_32acb0abdd63.pdf
Court

High Court

Although the applicant established a seriously arguable case on technical issues about the share issue, the balance of convenience favoured defendants: there was an irretrievable breakdown of trust with the applicant, the company required unrestrained management to protect creditors and shareholders, the company had not suffered proven financial detriment in the interim, and minority protections and other remedies exist; accordingly interim injunctive relief was refused.

New Zealand Case Law

LOOKMAN & 187 BRIDGE TRUSTEES 53 LTD as Trustees of the LOOKMAN FAMILY TRUST v DESIGN ELECTRONICS LTD [2018] NZHC 904

QUEENSLAND MAINTENANCE SERVICES (NZ) LIMITED v QUEENSLAND MAINTENANCE SERVICES (PTY) LIMITED (IN LIQUIDATION) [2015] NZHC 450

SLAVICH V PACESETTER PRINT GROUP LIMITED AND ANOR HC HAM CIV 2006-419-318