In the matter of Academy Construction & Development Pty Ltd (subject to Deed of Company Arrangement) [2024] NSWSC 808

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Academy Construction & Development Pty Ltd (subject to Deed of Company Arrangement) [2024] NSWSC 808 Hearing dates: 12 – 13 June 2024 Date of orders: 1 July 2024 Decision date: 01 July 2024 Jurisdiction: Equity - Corporations List Before: Black J Decision: Deed of Company Arrangement to be terminated and parties heard as to costs. Catchwords: CORPORATIONS — Voluntary administration — Deed of company arrangement — Terminating deed of company arrangement under s 445D of the Corporations Act 2001 (Cth) — Where Deed disadvantageous to one creditor — Where Deed provided for third party releases — 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), Pt 5.3A, ss 445D, 447A - Design and Building Practitioners Act 2020 (NSW), s 37 - Evidence Act 1995 (NSW), s 136 - Home Building Act 1989 (NSW), s 18B - Insolvency Practice Schedule (Corporations), ss 90-15, 75-42 Cases Cited: - Adelaide Brighton Cement Ltd, Re Concrete Supply Pty Ltd v Concrete Supply Pty Ltd (subject to deed of company arrangement) (No 4) [2019] FCA 1846 - Australian Securities and Investments Commission v Midland Hwy Pty Ltd (admin apptd) (2015) 110 ACSR 203; [2015] FCA 1360 - Betfair Pty Ltd v Racing New South Wales (2010) 189 FCR 356; [2010] FCAFC 133 - Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd (2005) 226 ALR 510; [2005] NSWSC 1235 - Blacktown City Council v Macarthur Telecommunications Pty Ltd (2003) 47 ACSR 391; [2003] NSWSC 883 - Britax Childcare Pty Ltd (ACN 006 773 600) v Infa Products Pty Ltd (ACN 092 222 994) (admins apptd) (2016) 115 ACSR 322; [2016] FCA 848 - Canstruct Pty Ltd v Project Sea Dragon Pty Ltd (subject to a Deed of Company Arrangement) [2024] FCA 112 - City of Swan v Lehman Brothers Australia Ltd (2009) 74 ACSR 191; [2009] FCAFC 130 - Decon Australia Pty Ltd v TFM Epping Land Pty Ltd (No 2) [2021] FCA 32 - Decon Australia Pty Ltd v TFM Epping Land Pty Ltd [2022] FCAFC 54 - Fleet Broadband Holdings Pty Ltd v Paradox Digital Pty Ltd (2005) 228 ALR 598; [2005] WASC 261 - Goldus Pty Ltd (Subject to Deed of Company Arrangement) v Cummins (No 4) (2021) 157 ACSR 118; [2021] FCA 1095 - Goldus Pty Ltd (subject to deed of company arrangement) v Australian Mining Pty Ltd (recs and mgrs apptd) [2023] FCAFC 27 - Guo v Song; Re SG Capricorn Investments Pty Ltd (subject to deed of company arrangement) [2018] NSWSC 12 - Habrok (Dalgaranga) Pty Ltd v Gascoyne Resources Ltd (2020) 149 ACSR 1; [2020] FCA 1395 - Hayes v Doran (No 2) [2012] WASC 486 - JA Pty Ltd v Jonco Holdings Pty Ltd (2000) 33 ACSR 691; [2000] NSWSC 147 - Joseph Khoury & Sons v Zambena Pty Ltd (1999) 217 ALR 527; [1999] NSWCA 402 - JR Consulting and Drafting Pty Ltd v Cummings (2016) 329 ALR 625; [2016] FCAFC 20 - Lam Soon Australia Pty Ltd v Molit (No 55) Pty Ltd (1996) 70 FCR 34; (1996) 22 ACSR 169 - Lehman Bros Holdings Inc v City of Swan (2010) 240 CLR 509; [2010] HCA 11 - Mondello Farms Pty Ltd v Annatom Pty Ltd (subject to deed of company arrangement) (2007) 64 ACSR 91; [2007] SASC 296 - PK Riddell Investments Pty Ltd v Onwards Up and Gone Pty Ltd [2024] VSC 159 - Re ACN 613 909 596 Pty Ltd (formerly Minle Wine Negociants of Australia Pty Ltd) (subject to Deed of Company Arrangement) [2023] NSWSC 753 - Re Antquip Hire Pty Ltd (subject to deed of company arrangement) (in liq) [2020] NSWSC 487 - Re Citadel Financial Corporation Pty Ltd (subject to Deed of Company Arrangement) (2020) 146 ACSR 220; [2020] NSWSC 886 - Re Eastmark Holdings Pty Ltd (2015) 109 ACSR 116; [2015] NSWSC 1437 - Re Hayes Steel Framing Systems Pty Ltd (admins apptd) [2017] NSWSC 385 - Re Pilot Advisory Pty Ltd (2019) 141 ACSR 458; [2019] FCA 2171 - Re Recycling Holdings Pty Ltd (2015) 107 ACSR 406; [2015] NSWSC 1016 - Re SBL Solutions Pty Ltd (subject to a deed of company arrangement) [2021] NSWSC 1002 - Sino Group International Ltd v Toddler Kindy Gymbaroo Pty Ltd (2023) 168 ACSR 311; [2023] FCAFC 110 - TNT Building Trades Pty Ltd v Benelong Developments Pty Ltd (admin apptd) (2012) 91 ACSR 17; [2012] NSWSC 766 - University of Sydney v Australian Photonics Pty Ltd (subject to deed of company arrangement) (2005) 53 ACSR 579; [2005] NSWSC 412 - Vero Insurance Ltd v Kassem (2011) 86 ACSR 607; [2011] NSWCA 381 Category: Principal judgment Parties: The Owners – Strata Plan 90889 (Plaintiff) Andrew John Spring and Peter John Moore (in their capacity as joint and several deed administrators of Academy Construction & Development Pty Ltd (Under Deed of Company Arrangement) (First Defendants) Academy Construction & Development Pty Ltd (Under Deed of Company Arrangement) (Second Defendant) John Michael Beaini (Third Defendant) Representation: Counsel: G D McDonald (Plaintiff) D Krochmalik/APF Ryan (First Defendants) R Notley (Second and Third Defendants)