In the matter of Bestcare Foods Ltd (subject to deed of company arrangement) [2014] NSWSC 645

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bestcare Foods Ltd (subject to deed of company arrangement) [2014] NSWSC 645 Hearing dates: 22 April 2014 Decision date: 23 May 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Determination that applicants would be justified in paying interest on unpaid creditors' claims, subject to subsequent stage of proceedings where the effect of deeds of release executed by relevant creditors will be determined. Notice to be provided to creditors of subsequent stage of proceedings. Catchwords: CORPORATIONS - voluntary administration - application by administrators for directions under Corporations Act 2001 (Cth) s 447D - where company holds surplus in deed funds from negligence proceedings after claims of creditors had been discharged - where deeds of release had been executed by most but not all creditors - whether administrators would be justified in paying interest on deed participants' claims under Corporations Act s 563B - construction of deed of company arrangement. Legislation Cited: - Corporations Act 2001 (Cth) ss 447D, 479(3), 556, 563A, 563B, 563B(2), 563B(3), 563C - Corporations Regulations 2001 (Cth) r 5.6.70A, Sch 8A - Supreme Court (Corporations) Rules 1999 (NSW) r 2.13 Cases Cited: - Bestcare Foods Ltd v Origin Energy LPG Ltd (formerly Boral Gas (NSW) Pty Ltd) [2013] NSWSC 1673 - Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; (2001) 53 NSWLR 153 - Codelfa Constructions Pty Ltd v State Rail Authority (NSW) [1982] HCA 24; (1982) 149 CLR 337 - Electricity Generation Corporation (t/as Verve Energy) v Woodside Energy Ltd [2014] HCA 7; (2014) 306 ALR 25 - Re Ansett Australia Ltd and Korda [2002] FCA 90; (2002) 115 FCR 409; 40 ACSR 433 - Re GB Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674; 5 ACSR 673; 9 ACLC 1291 - Re Green (as voluntary administrators of Bevillesta Pty Ltd) [2011] NSWSC 417; (2011) 254 FLR 324; 84 ACSR 215 - Re MF Global Australia Ltd (in liq) [2012] NSWSC 994; (2012) 267 FLR 27 - Re One.Tel Networks Holdings Pty Ltd [2001] NSWSC 1065; (2001) 40 ACSR 83 Texts Cited: - Australian Law Reform Commission Report 45, General Insolvency Inquiry (Harmer Report) 1988 Category: Interlocutory applications Parties: David Ingram and David Anthony Ross in their capacity as Administrators of Bestcare Foods Ltd (subject to deed of company arrangement) (Applicant) Representation: Counsel: A G Martin (Applicant) G Laughton SC (Creditors) Solicitors: Champion Legal (Applicant) Finn Roache (Creditors) File Number(s): 2014/89694