New Zealand Case Law: Decisions & Judgments

Topic

Setting aside security

Legal area

Court

29 Apr 2015

DAVID ROSS PETTERSON AS LIQUIDATOR OF POLYETHYLENE PIPE SYSTEMS LIMITED (IN LIQUIDATION) v DAVID CHARLES BROWNE [2015] NZHC 866

Citation

[2015] NZHC 866
Court

High Court

The Court held the GSA would not be set aside because PPS was solvent when the transactions occurred, the transfers and charge formed part of a legitimate, contemporaneous restructuring for which the directors had reasonable grounds (including reliance on advice about insurance), and the advance was, in substance, by David Browne; accordingly the liquidator's applications were dismissed.
6 May 2008

HEATH AND MELTZER V G E FINANCE AND INSURANCE HC AK CIV 2007-404-007599

Citation

openlaw-652a4d34_ea50_4ac6_aa35_5c391866a773.pdf
Court

High Court

No trust was created by the parties' correspondence and G E did not advance monies to Phoenix nor properly exercise a security in respect of the trucks; G E abandoned available judicial remedies and did not resist Mallon J's order setting aside the GSA and cross guarantee; consequently G E has no entitlement to the $61,661.12 sale proceeds which must be distributed in the liquidation estate.
9 Oct 2007

G E FINANCE AND INSURANCE TRADING AS GE COMMERCIAL FINANCE V ARRON LESLIE HEATH AND JEFFREY PHILIP MELTZER AS THE LIQUIDATORS OF PHOENIX FREIGHT LIMITED HC AK CIV 2006-404-4903

Citation

openlaw-76de165a_c309_41c2_adf4_4340762efd8c.pdf
Court

High Court

The payment of $282,418.25 was not made by Phoenix in satisfaction of a debt owed by Phoenix to GE Finance at the time because the GSA created security but did not create a debt and the cross-guarantee (which would create liability) was executed after the payment; therefore the liquidators failed to establish a necessary element of s 292 and the payment was not set aside, although the GSA and cross-guarantee are set aside and the charge released.

New Zealand Case Law

DAVID ROSS PETTERSON AS LIQUIDATOR OF POLYETHYLENE PIPE SYSTEMS LIMITED (IN LIQUIDATION) v DAVID CHARLES BROWNE [2015] NZHC 866

HEATH AND MELTZER V G E FINANCE AND INSURANCE HC AK CIV 2007-404-007599

G E FINANCE AND INSURANCE TRADING AS GE COMMERCIAL FINANCE V ARRON LESLIE HEATH AND JEFFREY PHILIP MELTZER AS THE LIQUIDATORS OF PHOENIX FREIGHT LIMITED HC AK CIV 2006-404-4903