Mediterranean Olives Financial Pty Ltd v Loaders Traders Pty Ltd (Subject to Deed of Company Arrangement) (No 2) [2011] FCA 178

FEDERAL COURT OF AUSTRALIA

Mediterranean Olives Financial Pty Ltd v Loaders Traders Pty Ltd (Subject to Deed of Company Arrangement) (No 2) [2011] FCA 178 Citation: Mediterranean Olives Financial Pty Ltd v Loaders Traders Pty Ltd (Subject to Deed of Company Arrangement) (No 2) [2011] FCA 178

Parties: MEDITERRANEAN OLIVES FINANCIAL PTY LTD AND ORS (ACCORDING TO THE ATTACHED SCHEDULE) v LOADERS TRADERS PTY LTD (ACN 069 549 042) (SUBJECT TO DEED OF COMPANY ARRANGEMENT) AND ORS (ACCORDING TO THE ATTACHED SCHEDULE)

File number: VID 927 of 2009

Judge: DODDS-STREETON J

Date of judgment: 4 March 2011

Catchwords: CORPORATIONS – companies subject to deeds of company arrangement ("DOCA") – application to set aside resolutions of creditors and to terminate DOCA – whether resolutions to enter DOCA contrary to interests of the creditors as a whole within meaning of s 600A(1)(c)(i) of Corporations Act 2001 (Cth) ("the Act") – whether material omissions from administrators' reports under s 445D(1)(c) of the Act – whether administrators' investigations and reports on avenues for recovery inadequate – major independent creditors preferred liquidation but outvoted by supporters of DOCA, including related parties – whether greater benefits for creditors from investigation and pursuit of claims on winding up – where plaintiffs undertake to pay creditors participating in dividend under DOCA an equivalent sum if companies wound up – inadequacies in administrators' investigations or material omissions from reports not established – not established that liquidation may produce greater return or offer benefits exceeding those under DOCA – relief sought refused.