16 Jul 2018
TRENDS PUBLISHING INTERNATIONAL LIMITED v ADVICEWISE PEOPLE LIMITED [2018] NZSC 62
- Citation
- [2018] 1 NZLR903
- Court
- Supreme Court
For Part 14 compromises creditors are classed by similarity of their legal rights and by how the proposed compromise affects those rights; however where inclusion of insiders and structurally preferential treatment of small creditors, together with material non-disclosure, amount to material irregularity and/or unfair prejudice under s 232(3)(b) and (c), the court may relieve affected creditors by declaring they are not bound by the compromise; applying these principles the respondents were entitled to relief.