New Zealand Case Law: Decisions & Judgments | LexChat

Topic

S236 compromise approval

Legal area

Court

30 Jun 2010

GDF-I LLP V LIGHTER QUAY HOTEL MANAGEMENT LTD HC AK CIV-2010-404-001920

Citation

openlaw-a163a60b_85ca_4b95_b969_374fe98f1f5d.pdf
Court

High Court

The s236 application was held to be not arguable and doomed to fail because a very large majority of the affected unsecured creditors opposed the proposed compromise; accordingly the stay granted by Allan J was set aside and interim liquidators were appointed to protect creditor interests, while final liquidation was reserved pending any appeal with directions for prompt lodgment.
22 Mar 2010

ATLAS FOOD AND BEVERAGE LIMITED AND ORS V THE COMMISSIONER OF INLAND REVENUE HC CHCH CIV-2009-409-001342

Citation

openlaw-7b6eaa0e_2f95_4fcb_a129_a0e9dfc90d8b.pdf
Court

High Court

The court held that r31.11 (with r31.22 extension) is the correct basis for stays in liquidation proceedings and applied the higher threshold from Anglian Sales: the Property Ventures group failed the threshold due to lack of commercial rationale, sole-creditor opposition, significant undisputed GST debt and public interest in investigation, so stays refused; by contrast the Atlas group met the threshold because refusal would likely render appeals nugatory and there was a realistic prospect that claims (particularly for Yellow Cross and Schwartz) would not be pursued by a liquidator, so limit…