17 Feb 2014
UNDERGROUND TECHNOLOGIES LTD (IN LIQ) v CONSTRUCTION CONTRACTS LIMITED [2014] NZHC 203
- Citation
- [2014] NZHC 203
- Court
- High Court
The stay was refused because evidence showed UTL was trading insolvently under the cashflow test (substantial aged trade liabilities, inability to meet current liabilities without significant capital injection, and unpaid statutory deductions/returns raising public interest concerns), and the risk that continued trading would worsen the company's position outweighed the unsubstantiated prejudice to third parties advanced by the applicant.