In the Matter of Addstone Pty Ltd (in liq); Macks, Peter Ivan [1998] FCA 638

FEDERAL COURT OF AUSTRALIA CORPORATIONS - Liquidator's application for directions under s 479(3) Corporations Law - application to Court for approval of funding arrangement to enable liquidator to pursue causes of action - whether proposed funding arrangement constitutes maintenance or champerty - whether falls within power under s 477(2)(c) of the Law to sell property of company - causes of action unable to be pursued without external funding - consideration of nature of proposed assignment - relevance of lack of consultation with all creditors - whether funds for litigation could have been procured from creditors - whether bona fide and for the benefit of creditors. Corporations Law ss 9, 477(2)(c), 479(3) Re Movitor Pty Ltd (In Liquidation) (1996) 64 FCR 380, considered and applied Re Tosich Construction Pty Ltd (1997) 73 FCR 219, applied UTSA Pty Ltd v Ultra Tune Australia Pty Ltd [1997] 1 VR 667, applied IN THE MATTER OF ADDSTONE PTY LTD (IN LIQUIDATION) ACN 010 764 997 PETER IVAN MACKS SG 3080 of 1995 MANSFIELD J ADELAIDE 9 JUNE 1998

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY SG 3080 of 1995

IN THE MATTER OF ADDSTONE PTY LTD

(IN LIQUIDATION) ACN 010 764 997

peter ivan macks

applicant

JUDGE: MANSFIELD J

DATE OF ORDER: 9 June 1998

WHERE MADE: ADELAIDE

THE COURT ORDERS THAT: 1. The liquidator as liquidator of the Emanuel group has power under the Law to enter into the Funding Arrangement, being the arrangement and transactions identified in the documents annexed to the affidavit of the liquidator sworn on 29 May 1998. 2. The annexure to that affidavit be confidential and not be available for the inspection of any person except by leave of the Court or a Judge. 3. The liquidator, creditors and contributories of the Emanuel group have liberty to apply. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.