In the matter of Maria’s Farm Veggies Pty Limited (administrators appointed) [2016] NSWSC 1457

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Maria's Farm Veggies Pty Limited (administrators appointed) [2016] NSWSC 1457 Hearing dates: 29 September 2016 Decision date: 29 September 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court orders pursuant to s 447A of the Corporations Act 2001 (Cth) that Pt 5.3A of the Corporations Act 2001 (Cth) is to operate in relation to the Company such that, if the indemnity of the administrators under s 443D of the Corporations Act is insufficient to meet any amount for which the administrators may be liable arising out of or in connection with the advance not exceeding $2,199,000 then the administrators will not be personally liable to repay such amount to the extent of that insufficiency. Catchwords: CORPORATIONS — voluntary administration — application by administrators of company under s 447A of the Corporations Act 2001 (Cth) – where administrators sought orders for modification of operation of Pt 5.3A of the Corporations Act to limit personal liability of administrators in respect of certain borrowings by company – where company was developing project that could provide increased returns to creditors if part of the project was completed – where completion of part of the project would not be possible without further borrowing by the company – where secured creditors committed to making the relevant advance to the company – whether interests of company's creditors best served by proposed arrangement – whether creditors of company are prejudiced or disadvantaged by orders sought. Legislation Cited: - Corporations Act 2001 (Cth), ss 443D, 447A, Pt 5.3A Cases Cited: - Re Mentha (in their capacities as joint and several administrators of the Griffin Coal Mining Company Pty Ltd) (admins apptd) [2010] FCA 1469; (2010) 82 ACSR 142 - Re Nexus Energy Ltd [2014] NSWSC 1041 - Re Renex Holdings (Dandenong) 1 Pty Ltd (admins apptd) [2015] NSWSC 2003 Category: Procedural and other rulings Parties: Rahul Goyal and David Winterbottom in their capacities as voluntary administrators of Maria's Farm Veggies Pty Limited (administrators appointed) (Plaintiffs) Representation: Counsel: C N Bova (Plaintiffs)