Elderslie Finance Corporation Limited v Newpage Pty Ltd (No 6) [2007] FCA 1030

FEDERAL COURT OF AUSTRALIA

Elderslie Finance Corporation Limited v Newpage Pty Ltd (No 6) [2007] FCA 1030

CORPORATIONS – Approval of compromise on application by liquidator under s 477(2A) of the Corporations Act 2001 (Cth) – Necessity of liquidator's obtaining Court's approval and jurisdiction of Court to grant approval – meaning of expression " a debt to the company" in s 477(2A) – whether order should be made that compromise remain confidential. Held: (1) claim based on voidable transaction was not "a debt to the company" but claim of a loan by the company was; (2) a suppression order in relation to terms of compromise should be made. WORDS AND PHRASES – "debt", "a debt to the company".

Corporations Act 2001 (Cth) s 477(2A) Federal Court of Australia Act 1976 (Cth) s 50 Dean-Willcocks v ATTT Investments Pty Ltd (1999) 17 ACLC 1310 cited Foyster v Foyster Holdings Pty Ltd (in liq) [2003] NSWSC 925 cited HIH Insurance Ltd and Related Matters [2004] NSWSC 5 cited McGrath re HIH Insurance Ltd [2005] NSWSC 731 cited Nambucca Investments Pty Ltd v Snoco Ltd [1999] NSWSC 211 cited QBE Workers Compensation (NSW) Ltd v GJ Formwork Pty Ltd (2006) 56 ACSR 687 cited Re Gate Gourmet Australia Pty Ltd (in liq) (2005) 23 ACLC 834 cited Re GB Nathan and Co Pty Ltd (in liq) (1991) 24 NSWLR 674 cited Re JN Taylor Holdings Ltd (in liq) [2007] SASC 193 followed Re Luxtrend Pty Ltd (in liq) [1997] 2 Qd R 86 followed Re Spedley Securities Ltd (in liq) (1992) 9 ACSR 83 cited Re Tietyens Investments Pty Ltd (in liq) (Receiver and Manager appointed) (1999) 31 ACSR 1 followed Re United Medical Protection; Application of Lombe Ltd (as prov liq) (2003) 46 ACSR 98 cited Spalla v St George Motor Finance Ltd (No 7) [2006] FCA 1177 cited State Bank of NSW v Turner Corporation Ltd (1994) 14 ACSR 480 cited