Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499

FEDERAL COURT OF AUSTRALIA

Sheahan, in the matter of BCI Finances Pty Limited (in liq) [2018] FCA 1499 File number: SAD 233 of 2018

Judge: WHITE J

Date of judgment: 28 September 2018

Catchwords: BANKRUPTCY AND INSOLVENCY – Plaintiffs seeking order pursuant to s 477(2A) of the Corporations Act 2001 (Cth) to approve entry into an agreement for the compromise of judgment debts. Held: approval under s 477(2A) of the Corporations Act given – creditors have approved the compromise under s 477(2B) – creditors communicated willingness to give approval pursuant to s 477(2A) – number of creditors is limited – the approval will result in the payment of substantial sums to the companies in liquidation – plaintiffs have obtained legal advice.

Legislation: Corporations 2001 (Cth) s 477 Federal Court Rules 2011 r 2.32

Cases cited: BCI Finances Pty Ltd (in liq) v Binetter (No 4) [2016] FCA 1351; (2016) 348 ALR 227 Stewart, in the matter of Newtronics Pty Ltd [2007] FCA 1375

Date of hearing: 28 September 2018

Registry: South Australia

Division: General Division

National Practice Area: Commercial and Corporations

Sub-area: Corporations and Corporate Insolvency

Category: Catchwords

Number of paragraphs: 26

Counsel for the Plaintiffs: Mr O Sheahan

Solicitor for the Plaintiffs: Mr O Sheahan

ORDERS SAD 233 of 2018 IN THE MATTER OF BCI FINANCES PTY LIMITED, BINQLD FINANCES PTY LIMITED, EGL DEVELOPMENT (CANBERRA) PTY LIMITED & LIGON 268 PTY LIMITED (ALL IN LIQUIDATION) BETWEEN: JOHN SHEAHAN AND IAN RUSSELL LOCK AS JOINT AND SEVERAL LIQUIDATORS OF BCI FINANCES PTY LIMITED, BINQLD FINANCES PTY LIMITED, EGL DEVELOPMENT (CANBERRA) PTY LIMITED & LIGON 268 PTY LIMITED (ALL IN LIQUIDATION) Plaintiffs