Mentha, in the matter of Arrium Limited (administrators appointed) [2016] FCA 1357

FEDERAL COURT OF AUSTRALIA

Mentha, in the matter of Arrium Limited (administrators appointed) [2016] FCA 1357 File number: VID 527 of 2016

Judge: DAVIES J

Date of judgment: 15 November 2016

Catchwords: CONTRACTS – proper construction of commercial contracts – whether work fee payable under the Recapitalisation Deed - whether the work fee (if payable) and other the costs and expenses payable under the Recapitalisation Deed are secured obligations under Art II of the Pledge and Security Agreements, or recoverable under an indemnity clause in those agreements - whether the condition for the payment of the costs and expenses under the Interim Funding Agreement was met - whether costs and expenses are nonetheless independently recoverable under an indemnity clause in the Pledge and Security Agreements - whether the disputed expenses were incurred in relation to an "Event of Default" or "Potential Event of Default" specified in cl 20.1 of the Interim Facility Agreement

Legislation: Corporations Act 2001 (Cth), s 447D(1)

Cases cited: Chartbrook Limited v Persimmon Homes Limited [2009] UKHL 38; 1 AC 1101 Electricity Generation Corporation v Woodside Energy Limited [2014] HCA 7; (2014) 251 CLR 640 Elkateb v Lawindi (1997) 42 NSWLR 396 F&K Jabbour v Custodian of Israeli Absentee Property [1954] 1 WLR 139 Horsell International Pty Ltd v Divetwo Pty Ltd [2013] NSWCA 368 JP Morgan Australia Limited v Consolidated Minerals Pty Ltd [2011] NSWCA 3 Margaronis Navigation Agency Ltd v Henry W Peabody & Co of London Ltd [1965] 2 QB 430 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; (2004) 218 CLR 45 Segelov v Ernst & Young Services Pty Ltd [2015] NSWCA 156; (2015) 89 NSWLR 431 Ship "Sam Hawk" v Reiter Petroleum Inc. [2016] FCAFC 26 Shipton Anderson & Co v Weil Brothers & Co [1912] 1 KB 574 Westfield Management Limited v AMP Capital Property Nominees Limited [2012] HCA 54; (2012) 247 CLR 129