IRM Home Loans & Ors v Superwoman Financial Solutions Group & Ors [2007] NSWSC 604

Reported Decision : (2007) 25 ACLC 1,034

New South Wales Supreme Court

CITATION : IRM Home Loans & Ors v Superwoman Financial Solutions Group & Ors [2007] NSWSC 604

HEARING DATE(S) : 29/05/07

JUDGMENT DATE : 29 May 2007

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : White J

EX TEMPORE JUDGMENT DATE : 29 May 2007

DECISION : See paragraphs 30-31 of judgment.

CATCHWORDS : CORPORATIONS – Administration – Application by shareholders to adjourn second meeting of creditors – Where there are two alternate proposals for deeds of company arrangement – Whether court should order adjournment of second meetings of creditors so as to allow time for second proposal to be offered unconditionally – Where second proposal subject to due diligence being completed and due diligence will not be complete before scheduled meeting – Where second proposal would be sufficient to discharge debts to all creditors and provide surplus funds and first proposal would discharge only debts to unsecured creditors – Where adjournment could result in first proposal being withdrawn and second proposal might not be offered unconditionally – Held that meeting ought not be adjourned or restrained – Order that operation of Part 5.3A of the Corporations Act 2001 (Cth) modified so that no deed of company arrangement may be entered into until expiration of 14 days after second meeting of creditors. - (Cth) Corporations Act 2001, ss 436C, 445D, 447A, 447E

LEGISLATION CITED : Corporations Act 2001 (Cth)

IRM Home Loans Pty Ltd & 3 Ors PARTIES : v Superwoman Financial Solutions Group Pty Ltd (Administrators Appointed) & 3 Ors