In the matter of Hayes Steel Framing Systems Pty Ltd (Administrators Appointed) [2017] NSWSC 385

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Hayes Steel Framing Systems Pty Ltd (Administrators Appointed) [2017] NSWSC 385 Hearing dates: 24 March 2017 Decision date: 11 April 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court orders that the First, Second and Third Defendants be wound up in insolvency; Mr Bradley Tonks be appointed to act as liquidator of the each of the companies; and the Plaintiffs' costs be costs in the winding up. Catchwords: CORPORATIONS – Winding up – Applications for winding up by court – where companies insolvent and in external administration – where creditors related to the companies and their director oppose applications with a view to executing deeds of company arrangement – whether liquidations likely to provide a better return to creditors than deeds of company arrangement – whether liquidations are in the public interest.

CORPORATIONS – Winding up – Liquidators – where order made that companies be wound up – whether Plaintiffs' nominee, rather than incumbent administrators, should be appointed as liquidator. Legislation Cited: - Copyright Act 1968 (Cth) - Corporations Act 2001 (Cth), Pt 5.3A, ss 9, 286, 439A, 440A, 445D, 447A, 459P, 461, 588FDA, 600A - Corporations and Other Legislation Amendment (Insolvency Law Reform) Regulation 2016 (Cth), Sch 2 - Corporations Regulations 2001 (Cth), reg 10.25.02(3)(i) - Insolvency Law Reform Act 2016 (Cth) - Supreme Court (Corporations) Rules (NSW), r 2.13 Cases Cited: - Australian Securities and Investments Commission v Midland Hwy Pty Ltd (admin apptd) [2015] FCA 1360; (2015) 110 ACSR 203 - Australian Securities and Investments Commission v Storm Financial Ltd (recs and mgrs apptd) (admin apptd) [2009] FCA 269; (2009) 71 ACSR 81 - Bidald Consulting Pty Ltd v Miles Special Builders Pty Ltd [2005] NSWSC 1235; (2005) 226 ALR 510 - Blacktown City Council v Macarthur Telecommunications Pty Ltd [2003] NSWSC 883; (2003) 47 ACSR 391 - Deputy Commissioner of Taxation v Woodings (1995) 13 WAR 189; 16 ACSR 266 - Fortress Credit Corporation (Australia) II Pty Ltd v Octaviar Ltd (recs and mgrs. apptd) (in liquidation) [2010] QCA 45; (2010) 77 ACSR 339 - Grocon Constructors Pty Ltd v Kimberley Securities Ltd (admins apptd) [2009] NSWSC 541; (2009) 72 ACSR 305 - Joseph Khoury & Sons v Zambena Pty Ltd [1999] NSWCA 402; (1999) 217 ALR 527 - Public Trustee (Qld) v Octaviar Ltd (subject to a deed of company arrangement) (recs and mgrs. apptd) [2009] QSC 202; (2009) 73 ACSR 139 - Re El Zorro Transport Pty Ltd [2013] NSWSC 1082 Re Streetscape Projects (Australia) Pty Ltd (subject to a deed of company arrangement) [2013] NSWSC 1289 - Workers Compensation Nominal Insurer v Perfume Empire Pty Ltd [2011] NSWSC 379 - Ziziphus Pty Ltd v Pluton Resources Ltd (recs and mgrs apptd) [2016] WASC 276 Category: Principal judgment Parties: Framecad IP Limited (First Plaintiff) Tanmari Pty Ltd (Second Plaintiff) Robert Cummings (Third Plaintiff) Hayes Steel Framing Systems Pty Ltd (admin apptd) (First Defendant) Steel Framing Systems International Pty Ltd (admin apptd) (Second Defendant) JR Consulting & Drafting Pty Ltd (admin apptd) (Third Defendant) Sean Wengel (Fourth Defendant) Robert Whitton (Fifth Defendant) Representation: Counsel: F Assaf/S L Ross (Plaintiffs) J Scarcella (Solicitor – Creditors)