New Zealand Case Law: Decisions & Judgments

Topic

Creditors' interests

Legal area

Court

20 Dec 2022

In the matter of OLD VILLA WELLNESS GROUP LTD [2022] NZHC 3563

Citation

[2022] NZHC 3563
Court

High Court

The Court granted the without‑notice application to delay the resumption of watershed meetings until 31 March 2023 because the administrators demonstrated that holding the meetings as scheduled would likely lead to liquidation and poor returns, whereas adjournment to allow a sale campaign is likely to produce greater returns for creditors and shareholders and is therefore in their best interests.
28 May 2020

CBCH NEW ZEALAND LIMITED ex parte STRAWBRIDGE, MARSDEN and TRACY [2020] NZHC 1146

Citation

[2020] NZHC 1146
Court

High Court

The court has statutory power under ss 239AT and 239ADO, and the COVID-19 emergency provisions reinforce discretion to extend time; given COVID-19 disruption to sale processes, the need to coordinate with Australian administrations and the prospect of better returns to creditors via a mothballing-and-sale strategy, the court should exercise its discretion to extend the convening period to 2 September 2020.
22 Jul 2014

COMMISSIONER OF INLAND REVENUE v OHIWA DEVELOPMENTS LIMITED [2014] NZHC 1726

Citation

[2014] NZHC 1726
Court

High Court

The court declined to adjourn under s239ABV and ordered liquidation because administration was a late proposal dominated by related-party creditors, provided no realistic or sufficient benefit to external creditors (notably Inland Revenue), and the external creditors' commercial decision for finality outweighed speculative future returns from administration.
24 Jul 2013

BRIDGECORP LTD (IN REC AND IN LIQN) v NIELSEN [2013] NZHC 1848

Citation

[2013] NZHC 1848
Court

High Court

The Official Assignee proved it was not in the public interest to discharge Nielsen: he demonstrated continued commercial irresponsibility, failure to comply adequately with bankruptcy duties and disclosure, continuing involvement and control of business and trust assets during bankruptcy, and posed a real risk of further creditor loss; conditions would be inadequate protection, therefore bankruptcy was lawfully extended until at least 23 November 2015.
27 Jun 2012

YOUNG & ASSOCIATES LIMITED V DAVID IAN RUSCOE AND RICHARD GRANT SIMPSON HC WN CIV-2012-485-65

Citation

openlaw-be69dce2_2af7_44cb_a339_005542978234.pdf
Court

High Court

The applicant's challenge failed because the liquidators' decision to settle was made in good faith, was within the range of decisions a reasonable liquidator could make given contingent future earnings, outdated valuation and sale risks, and therefore there was no demonstration of fraud, bad faith or irrationality warranting interference under s 284.
21 Feb 2008

ZORN V POD RESTAURANT LIMITED HC WN CIV 2007-485-2790

Citation

openlaw-f31f3ca1_437b_486b_810b_d1a4ec5f7775.pdf
Court

High Court

The Court was satisfied the statutory preconditions of s.246 were met: a liquidation application by the Commissioner existed, there was a prima facie case of insolvency, imminent risk to the company's principal asset from landlord action if the business closed, urgency and an undertaking as to damages were present; accordingly interim liquidators were appointed to preserve assets and protect creditors.
9 Aug 2007

BRIDGECORP HOLDINGS LTD V GOODMAN LTD HC AK CIV-2007-404-4866

Citation

openlaw-f592dc3d_8d90_4563_b72b_f145406120ed.pdf
Court

High Court

The court exercised its discretion under s 280 to permit Messrs Waller and McCloy to be appointed liquidators because their appointment was a condition of funding that materially increased the prospects of completing the development and thereby maximising recoveries for creditors; the appointment was therefore in the overall interests of the creditors despite the statutory disqualification.

New Zealand Case Law

In the matter of OLD VILLA WELLNESS GROUP LTD [2022] NZHC 3563

CBCH NEW ZEALAND LIMITED ex parte STRAWBRIDGE, MARSDEN and TRACY [2020] NZHC 1146

COMMISSIONER OF INLAND REVENUE v OHIWA DEVELOPMENTS LIMITED [2014] NZHC 1726

BRIDGECORP LTD (IN REC AND IN LIQN) v NIELSEN [2013] NZHC 1848

YOUNG & ASSOCIATES LIMITED V DAVID IAN RUSCOE AND RICHARD GRANT SIMPSON HC WN CIV-2012-485-65

ZORN V POD RESTAURANT LIMITED HC WN CIV 2007-485-2790

BRIDGECORP HOLDINGS LTD V GOODMAN LTD HC AK CIV-2007-404-4866