In the Matter of New Bounty Pty Ltd; Winpar Holdings Ltd v Baron Corporation Pty Ltd [2015] NSWSC 1060

Supreme Court New South Wales

Medium Neutral Citation: In the Matter of New Bounty Pty Ltd; Winpar Holdings Ltd v Baron Corporation Pty Ltd [2015] NSWSC 1060 Hearing dates: 21, 22 May 2015; 17 June 2015 Decision date: 05 August 2015 Jurisdiction: Common Law Before: Sackville AJA Decision: 1. The proceedings be dismissed. 2. The Plaintiff pay the Defendants' costs of the proceedings. Catchwords: CORPORATIONS LAW – deed of company arrangement (DOCA) – related company forgives portion of debt in return for an issue of shares – effect is to dilute interests of minority shareholders – whether the administration and execution of the DOCA involved an abuse of Pt 5.3A of the Corporations Act 2001 (Cth) – whether relief should be granted under s 447A having regard to the financial position of the company after termination of the administration – whether injunctive relief should be granted under s 1324 Legislation Cited: Corporations Act 2001 (Cth), ss 9, 95A, 182, 260A, 260D, 435A, 436A, 437A, 437D, 439A, 439C, 444D, 445C, 445FA, 444G, 445G, 445H, 447A, 664C, 1317E, 1317F, 1324; Pt 5.3A; Pt 6A.2

Civil Liability Act 2002 (NSW), s 5D Evidence Act 1995 (NSW), s 140 Cases Cited: Aloridge Pty Ltd (prov liq apptd) v Christianos [1994] FCA 123; 13 ACSR 99 Al-Shennag v Statewide Roads Ltd [2008] NSWCA 300 Argyle Art Centre Pty Ltd v Argyle Bond and Free Stores Co Pty Ltd [1976] 1 NSWLR 377 Australasian Memory Pty Ltd v Brien [2000] HCA 30; 200 CLR 270 Australian Beverage Distributors Pty Ltd v The Redrock Co Pty Ltd [2007] NSWSC 966; 213 FLR 450 Australian Securities and Investments Commission v Mauer-Securities Ltd [2002] NSWSC 741; 42 ACSR 605 Batistatos v Roads and Traffic Authority of New South Wales [2006] HCA 27; 226 CLR 256 Blacktown City Council v Macarthur Telecommunications Pty Ltd (admin apptd) [2003] NSWSC 883; 47 ACSR 391 Chappel v Hart [1998] HCA 55; 195 CLR 232 City of Swan v Lehman Brothers Australia Ltd [2009] FCAFC 130; 260 ALR 199 Commodore Business Machines Pty Ltd v Trade Practices Commission (1990) 92 ALR 563 Dowling v Colonial Mutual Life Assurance Society Ltd [1915] HCA 56; 20 CLR 509 Emanuele v Australian Securities Commission (1995) 63 FCR 54 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; 200 FCR 296 Hanson Construction Materials Pty Ltd v FEC Civil Pty Ltd [2009] NSWSC 231 Honest Remark Pty Ltd v Allstate Exploration NL [2006] NSWSC 735; 58 ASCR 234 Industrial Equity Ltd v Blackburn [1977] HCA 59; 137 CLR 567 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd [2010] HCA 19; 241 CLR 1Kirwan v Cresvale Far East Ltd (in liq) [2002] NSWCA 395; 44 ACSR 21 Kyle House Pty Ltd v ACN 000 016 213 Pty Ltd [2007] NSWSC 224 Maylord Equity Management Pty Ltd v ReelTime Media Ltd [2008] NSWSC 1045 McIntosh v Williams [1979] 2 NSWLR 543 Melway Publishing Pty Ltd v Robert Hicks Pty Ltd [2001] HCA 13; 205 CLR 1 Morley v Australian Securities and Investments Commission [2010] NSWCA 331; 274 ALR 205 Parkview Constructions Pty Ltd v Tayeh [2009] NSWSC 186; 71 ACSR 65 Re AFG Insurances Ltd [2002] NSWSC 735; 20 ACLC 1588 Re Capital General Corporation Ltd; Rodgers v Radly [2000] VSC 570; 37 ACSR 158 Re Pasminco Ltd; McCluskey v Pasminco Ltd (No 2) [2004] FCA 656; 49 ASCR 470 Rosenberg v Percival [2001] HCA 18; 205 CLR 434 Southern Cross Interiors Pty Ltd v Deputy Commissioner of Taxation [2001] NSWSC 621; 53 NSWLR 213 Spacorp Australia Pty Ltd v Fitzgerald [2001] VSC 61; 19 ACLC 979 TS Recoveries Pty Ltd v Sea-Slip Marinas (Aust) Pty Ltd [2007] NSWSC 1410 Walker v Commonwealth Trading Bank of Australia [1985] 3 NSWLR 496 Walker v Wimborne [1976] HCA 7; 137 CLR 1 Whitehouse v Carlton Hotel Pty Ltd [1987] HCA 11; 162 CLR 285 Williams v Spautz [1992] HCA 34; 174 CLR 509 Texts Cited: Ford's Principles of Corporations Law (Looseleaf ed, LexisNexis) Category: Principal judgment Parties: Winpar Holdings Limited (Plaintiff) Baron Corporation Pty Limited (First Defendant) Peter Paul Krejci (As the Administrator of the Deed of Company Arrangement between New Bounty Pty Limited and Baron Corporation Pty Limited dated 12 May 2014) (Second Defendant) Brian Raymond Silvia (As the Administrator of the Deed of Company Arrangement between New Bounty Pty Limited and Baron Corporation Pty Limited dated 12 May 2014) (Third Defendant) New Bounty Pty Limited (Fourth Defendant) Representation: Counsel: T Brennan / Ms V O'Halloran (Plaintiff) M Condon SC / M Stevens (First and Fourth Defendants) Submitting appearance (Second and Third Defendants)