Cook, in the matter of The Natural Grocery Company Pty Ltd (administrator appointed) [2020] FCA 433

FEDERAL COURT OF AUSTRALIA

Cook, in the matter of The Natural Grocery Company Pty Ltd (administrator appointed) [2020] FCA 433 File number(s): NSD 2108 of 2019

Judge(s): FARRELL J

Date of judgment: 18 March 2020

Date of publication of reasons: 2 April 2020

Catchwords: CORPORATIONS – application by deed administrator for orders under s 444F of the Corporations Act 2001 (Cth) – where the recovery of property by owners or lessors of ongoing leased premises would have a material adverse effect on achieving the purposes of the deed of company arrangement – where the interests of the owners or lessors are adequately protected – application granted. CORPORATIONS – application by a deed administrator for leave under s 444GA of the Corporations Act 2001 (Cth) to transfer shares in the company – where the only realistic alternative to making the order so as to satisfy a condition precedent to a deed of company arrangement is winding up – where all classes of creditors would be worse off upon winding up than under the deed of company arrangement – where Court satisfied that the transfer of shares would not unfairly prejudice the interests of members of the company – leave granted. CORPORATIONS – application by a deed administrator for orders under s 90-15 of sch 2 of the Corporations Act 2001 (Cth), Insolvency Practice Schedule (Corporations) – where deed administrator sought Court direction that the deed administrator and company would be justified in treating noteholder claims as wholly extinguished following distribution from the deed fund or effectuation – where direction would facilitate the deed of company arrangement and serve the purposes of Pt 5.3A of the Corporations Act – where obtaining such a direction is a condition precedent to the deed of company arrangement – where liquidation is likely if direction not given – where noteholders would be worse off under liquidation – where noteholders suffer no material prejudice from the making of the direction – where all noteholders voted in favour of the deed – where no opposition from noteholders to the making of the direction – application granted. PRACTICE AND PROCEDURE – application for suppression of affidavit under s 37AF of the Federal Court Act 1976 (Cth) – where disclosure of the amount of the best offer to purchase assets of a company would compromise the integrity of any future sale campaign if the deed of company arrangement was not effectuated – where suppression necessary to prevent prejudice to the proper administration of justice – application granted.