New Zealand Case Law: Decisions & Judgments

Topic

Creditor consent

Legal area

Court

28 Sept 2020

Snakk Media Ltd (in liq) [2020] NZHC 2531

Citation

[2020] NZHC 2531
Court

High Court

The Court ordered termination of Snakk Media Ltd's liquidation under s 250 because the Bell Block pre-conditions were satisfied (sole creditor consented, liquidators' costs secured, shareholders would not be worse off and could benefit), there was no opposing party, and public interest concerns about an insolvent company resuming trading were addressed by requiring enforceable undertakings from the sole creditor (Mounterowen) and by ordering the termination order to lie in Court pending filing of those undertakings.
5 Sept 2019

CHU v HEALTH DISTRIBUTORS (HOLDINGS) LIMITED (IN LIQUIDATION) [2019] NZHC 2221 [5 September 2019]

Citation

[2019] NZHC 2221
Court

High Court

The Court found the s 250 criteria were satisfied — creditors were paid or had consented or been provided for, liquidators' costs were paid or secured, shareholders (via Riverglade) consented and would not be worse off, and there were no public interest concerns — and therefore ordered termination of the liquidation.
8 Aug 2019

NORTH v QUICK TRICKY DOG LIMITED (IN LIQUIDATION) [2019] NZHC 1927

Citation

[2019] NZHC 1927
Court

High Court

Termination ordered because the sole creditor (Inland Revenue) had been paid in full and consented, the liquidators did not oppose the application and their costs had been addressed, shareholders consented, and there were no other creditors; public interest favoured regularising the company's position given ongoing trading and employees.
17 Aug 2016

PATTISON AND HOLLIS [2016] NZHC 1852

Citation

[2016] NZHC 1852
Court

High Court

The Court terminated the liquidation under s 250 because the Bell Block factors were satisfied: all creditors were paid, had consented, or satisfactory provision existed including consent from the secured creditor Rabobank; the liquidators' costs could be met from funds in the liquidation; all shareholders consented; and no other affected party required service under r 18.9.
18 Dec 2013

HARRISON as a Company Director of HAWKEYE UAV LTD (now in liquidation) v MANAWATU-WANGANUI REGIONAL COUNCIL (trading as HORIZONS REGIONAL COUNCIL) [2013] NZHC 3473

Citation

[2013] NZHC 3473
Court

High Court

On the evidence (Official Assignee's report showing assets > liabilities, bank support, payment to council, undertaking to meet creditors and payment of Official Assignee costs) the Court was satisfied it was just and equitable to terminate the liquidation under s 250; creditor consent was not required given the assurances and evidence; termination was granted subject to conditions including payment of Official Assignee's costs and a written undertaking regarding funds or arrangements for creditors.
2 Feb 2010

MERIDIAN ENERGY LIMITED V BLACKMORE TRUST LIMITED HC WN CIV-2009-485-2134

Citation

openlaw-f5a489e0_d302_4f20_aaa0_59498829e51e.pdf
Court

High Court

Given Meridian's consent, the liquidators' report that there were no other creditors, all liquidator costs and disbursements paid and the liquidators' consent, and sole shareholder consent via the director applicant, the Court was satisfied it was just and equitable under s.250 Companies Act 1993 to terminate the liquidation and therefore exercised its discretion to make the termination order.

New Zealand Case Law

Snakk Media Ltd (in liq) [2020] NZHC 2531

CHU v HEALTH DISTRIBUTORS (HOLDINGS) LIMITED (IN LIQUIDATION) [2019] NZHC 2221 [5 September 2019]

NORTH v QUICK TRICKY DOG LIMITED (IN LIQUIDATION) [2019] NZHC 1927

PATTISON AND HOLLIS [2016] NZHC 1852

HARRISON as a Company Director of HAWKEYE UAV LTD (now in liquidation) v MANAWATU-WANGANUI REGIONAL COUNCIL (trading as HORIZONS REGIONAL COUNCIL) [2013] NZHC 3473

MERIDIAN ENERGY LIMITED V BLACKMORE TRUST LIMITED HC WN CIV-2009-485-2134