Ingram, in the matter of 5Star Sinai Limited (administrators appointed) [2018] FCA 734

FEDERAL COURT OF AUSTRALIA

Ingram, in the matter of 5Star Sinai Limited (administrators appointed) [2018] FCA 734 File number(s): NSD 13 of 2018

Judge(s): FARRELL J

Date of judgment: 24 May 2018

Catchwords: CORPORATIONS – application for leave pursuant to s 600H(1)(b) of the Corporations Act 2001 (Cth) to allow creditors with "subordinate claims" arising from subscription for shares to vote at the second meeting of creditors – whether a creditor's claim in relation to subscription for shares is a "subordinate claim" as defined in s 563A(2) of the Corporations Act – whether the phrase "otherwise dealing" in s 563A(2)(b) of the Corporations Act is to be understood by reference to s 766C(1) and if so, whether the qualifications in s 766C(2)-(7) must be taken into account – whether or not the issue of shares to the subscriber is relevant for the purposes of s 563A(2) of the Corporations Act – application granted COSTS – application by interveners that their costs be costs of the administration – interveners not joined as party to the proceedings – application dismissed

Legislation: Corporations Act 2001 (Cth) Chs 6D, 7, Div 3 Pt 7.1, ss 9 439A, 447A, 563A, 600H, 710, 711, 718, 722, 737, 761A, 763A, 763B, 763E, 764A, 766C, 1325 Corporations Amendment (Sons of Gwalia) Act 2010 (Cth) Federal Court of Australia Act 1976 (Cth) s 43 Corporations Regulations 2001 (Cth) reg 5.623 (repealed) Federal Court (Corporations) Rules 2000 (Cth) r 2.13 Federal Court Rules 2011 (Cth) r 9.12 Insolvency Practice Rules (Corporations) 2016 (Cth) r 75-85