In the matter of Metal Storm Ltd (subject to Deed of Company Arrangement) [2014] NSWSC 813

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Metal Storm Ltd (subject to Deed of Company Arrangement) [2014] NSWSC 813 Hearing dates: 27 - 29 May 2014 Decision date: 19 June 2014 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Parties to bring in agreed short minutes of order to give effect to judgment within 14 days or, if there is no agreement between them, their respective draft orders and short submissions as to the differences between them. Parties to be heard as to costs. Catchwords: CONTRACT - construction - where trustee and relevant company subject to deed of company arrangement entered into trust deeds in respect of issuing of secured and unsecured notes - where majority secured creditor provided directions to trustee after company entered into voluntary administration - where directions were made in respect of voting for variations to deed of company arrangement and the release of trustee's charge over assets of company - whether trustee was obliged to comply with relevant directions - whether trustee was justified in not complying with directions under Corporations Act 2001 (Cth) s 283HA - whether trustee is relieved from liability from having proceeded on such a basis under Trustees Act 1925 (NSW) s 85 - whether administration of company is an 'enforcement' under relevant clause - whether majority secured creditor is entitled to vote in meeting of creditors.

CORPORATIONS - management and administration - application for appointment of a receiver - whether appointment should be made under Supreme Court Act 1970 (NSW) s 67 or Corporations Act s 283HB - where there exist a deadlock preventing sale of company's assets - where company's financial position is deteriorating - whether relevant factors for appointment of receiver have been satisfied - whether current deed administrator should be appointed as receiver - whether appointment of receiver entitles trustee to release relevant charge - whether relevant parties are entitled to exercise an equitable lien over assets of company.