Hill, in the matter of Ovato Limited (Administrators Appointed) [2022] FCA 903

Federal Court of Australia

Hill, in the matter of Ovato Limited (Administrators Appointed) [2022] FCA 903 File number(s): NSD 565 of 2022

Judgment of: STEWART J

Date of judgment: 3 August 2022

Catchwords: CORPORATIONS – application by administrators for orders pursuant to ss 443A(1) and 447A of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations) – where administrators of public group of companies seek to continue to trade the business of the group while assessing options for recapitalisation or sale of group – whether administrators are justified in entering into funding arrangement to facilitate ongoing trade during prospective sale period – where administrators seek to limit personal liability to repay the funding – whether funding arrangement is in the best interests of creditors – application allowed

Legislation: Corporations Act 2001 (Cth) Pt 5.3A, ss 435A, 443A, 447A; Sch 2, Insolvency Practice Schedule (Corporations) s 90-15 Federal Court of Australia Act 1976 (Cth) ss 37AF(1)(a) and 37AG(1)(a)

Cases cited: In the matter of RCR Tomlinson Ltd (administrators appointed) & Ors [2018] NSWSC 1859 Korda, in the matter of Ten Network Holdings Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2017] FCA 1144; 35 ACLC 17-044 Krejci, in the matter of Union Standard International Group Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1111 Niccol, in the matter of Fly365 Pty Ltd (in liq) [2020] FCA 1303 Re Unlockd Limited (administrators appointd) & Ors [2018] VSC 345 at [60]-[64] Silvia v FEA Carbon Pty Ltd (admin apptd) (recs and mgrs apptd) [2010] FCA 515; 185 FCR 301 Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 2) [2020] FCA 717; 144 ACSR 347 Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) [2020] FCA 571; 144 ACSR 310