Habrok (Dalgaranga) Pty Ltd v Gascoyne Resources Ltd [2020] FCA 1395

Federal Court of Australia

Habrok (Dalgaranga) Pty Ltd v Gascoyne Resources Ltd [2020] FCA 1395 File number(s): VID 519 of 2020

Judgment of: BEACH J

Date of judgment: 29 September 2020

Catchwords: CORPORATIONS – gold mining group – insolvency – voluntary administration – deed of company arrangement – rival deeds of company arrangement – dual track process – inadequacy of sale process – recapitalisation – capital raising of $85 million – role of administrators – conflict of interest – relevance of work prior to administration – adequacy of investigation – report to creditors – deficiency in report to creditors – precluding creditors from considering rival deeds of company arrangement – failure to adjourn second meeting of creditors – terminating deed of company arrangement – liquidation – application under ss 445D and 447A of Corporations Act 2001 (Cth) – COVID-19 special measures – relief refused

Legislation: Corporations Act 2001 (Cth) ss 51C, 60, 435A, 436DA, 437A, 438A, 439A, 440B, 442B, 443D, 443E, 443F, 445D, 444DA, 444GA 447A, 556, 561, 563A, 588FA, 588FB, 588FC, 588FE, 588FJ, 588FL, 588GA and 600H; schedule 2 ss 5-30, 75-42, 75-43, 80-55, 90-15 and 90-20 Insolvency Practice Rules (Corporations) 2016 (Cth) ss 75-140 and 75-225 Personal Property Securities Act 2009 (Cth) ss 12, 267 and 340

Cases cited: Allatech Pty Ltd v Construction Management Group Pty Ltd (2002) 167 FLR 324 Australian Securities and Investments Commission v Midland Highway Pty Ltd (2015) 110 ACSR 203 Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd (2005) 226 ALR 510 Correa v Whittingham (No 3) [2012] NSWSC 526 Deputy Commissioner of Taxation (Cth) v Pddam Pty Ltd (1996) 19 ACSR 498 Ebner v Official Trustee in Bankruptcy (2000) 205 CLR 337 Re Ten Network Holdings Ltd (2017) 252 FCR 519 Shafston Avenue Construction Pty Ltd v McCann (2019) 138 ACSR 299 Young v Sherman (2002) 170 FLR 86 Registry: Victoria