In the matter of Citadel Financial Corporation Pty Ltd (subject to Deed of Company Arrangement) [2020] NSWSC 886

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Citadel Financial Corporation Pty Ltd (subject to Deed of Company Arrangement) [2020] NSWSC 886 Hearing dates: 23 June 2020 Decision date: 10 July 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Deed of Company Arrangement terminated. First Defendant wound up in insolvency. First Defendant to pay Plaintiffs' and Second Defendant's costs of the proceedings. Catchwords: CORPORATIONS — Voluntary administration — Deed of company arrangement — Terminating deed of company arrangement under s 447A of the Corporations Act 2001 (Cth) — Terminating deed of company arrangement under s 445D(1)(e) or (f) of the Corporations Act 2001 (Cth) — Deed of company arrangement only supported by creditors related to company or its director — Company ceased operations since 2015 — no evidence operations would recommence — Whether deed of company arrangement an abuse of process of Pt 5.3A of the Corporations Act 2001 (Cth) Legislation Cited: - Corporations Act 2001 (Cth), ss 439A, 445D(1)(e)-(f), 447A, Pt 5.3A Cases Cited: - Australian Securities and Investments Commission v Midland Hwy Pty Ltd (admin apptd) [2015] FCA 1360; (2015) 110 ACSR 203 - Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd [2005] NSWSC 1235; (2005) 226 ALR 510 - Blacktown City Council v Macarthur Telecommunications Pty Ltd [2003] NSWSC 883; (2003) 47 ACSR 391 - Cresvale Far East Ltd (in liq) v Cresvale Securities Ltd [2001] NSWSC 89; (2001) 37 ACSR 394 - Deputy Commissioner of Taxation v TMPL Pty Ltd (subject to deed of company arrangement) (No 3) [2011] FCA 1403; (2011) 289 ALR 69 - Fleet Broadband Holdings Pty Ltd v Paradox Digital Pty Ltd [2005] WASC 261; (2005) 228 ALR 598 - Guo v Song; Re SG Capricorn Investments Pty Ltd (subject to deed of company arrangement) [2018] NSWSC 12 - Joseph Khoury & Sons v Zambena Pty Ltd [1999] NSWCA 402; (1999) 217 ALR 527 - Kirwan v Cresvale Far East Ltd (in liq) [2002] NSWCA 395; (2002) 44 ACSR 21 - Mondello Farms Pty Ltd v Annatom Pty Ltd (subject to deed of company arrangement) [2007] SASC 296; (2007) 64 ACSR 91 - Public Trustee (Qld) v Octaviar Ltd (subject to deed of company arrangement) (recs and mgrs apptd) [2009] QSC 202; (2009) 73 ACSR 139 - Re Hayes Steel Framing Systems Pty Ltd (admins apptd) [2017] NSWSC 385 - Re Pilot Advisory Pty Ltd [2019] FCA 2171; (2019) 141 ACSR 458 - Re Recycling Holdings Pty Ltd [2015] NSWSC 1016; (2015) 107 ACSR 406 - Re Sales Express Pty Ltd (admins apptd) [2014] NSWSC 460 - University of Sydney v Australian Photonics Pty Ltd (subject to deed of company arrangement) [2005] NSWSC 412; (2005) 53 ACSR 579 - Vero Insurance Ltd v Kassem [2011] NSWCA 381 Category: Principal judgment Parties: Action Scaffolding & Rigging Pty Ltd (in liquidation) (First Plaintiff) John Richard Park and Kelly-Anne Lavina Trenfield as liquidators of Action Scaffolding & Rigging Pty Ltd (in liquidation) (Second Plaintiff) Citadel Financial Corporation Pty Ltd (subject to Deed of Company Arrangement) (First Defendant) Timothy James Cook as deed administrator of Citadel Financial Corporation Pty Ltd (subject to deed of company arrangement) (Second Defendant) Representation: Counsel: J G Simpkins (Plaintiffs) D L Cook SC/M L Rose (First Defendant) D Krochmalik/H Zhao (Second Defendant)