In the matter of Boart Longyear Limited [2017] NSWSC 567

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Boart Longyear Limited [2017] NSWSC 567 Hearing dates: 4 and 5 May 2017 Decision date: 10 May 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court orders pursuant to s 411 of the Corporations Act 2001 (Cth) that the Plaintiffs convene meetings of certain secured creditors and certain unsecured creditors for the purpose of considering and, if thought fit, agreeing to the schemes of arrangement called the Secured Creditor Scheme and the Unsecured Creditor Scheme respectively. Catchwords: CORPORATIONS – Arrangements and reconstructions – Schemes of arrangement or compromise – Applications under s 411 of the Corporations Act 2001 (Cth) for orders convening meetings of members to consider and if thought fit to agree to proposed schemes of arrangement – where schemes and their conditions precedent provide for recapitalisation and change in control of the companies, waiver of contractual change of control provisions, variation of director nomination rights, and interest rate and maturity date concessions by creditors – whether terms create different classes of creditors – whether adequate disclosure made in explanatory statements – whether requirements to order scheme meetings satisfied Legislation Cited: - Corporations Act 2001 (Cth), ss 199A, 411–412, 563A(2), 1319 - Corporations Regulations 2001 (Cth) - Supreme Court (Corporations) Rules 1999 (NSW), rr 2.13, 2.15, 3.2 Cases Cited: - Australian Securities Commission v Marlborough Gold Mines Ltd [1993] HCA 15; (1993) 177 CLR 485 - Bacnet Pty Ltd v Lift Capital Partners Pty Ltd (in liq) [2010] FCAFC 36; (2010) 183 FCR 384 - Centro Properties Ltd v PricewaterhouseCoopers [2011] NSWSC 1465; (2011) 86 ACSR 584 - F T Eastment & Sons Pty Ltd v Metal Roof Decking Supplies Pty Ltd (1977) 3 ACLR 69 - Fowler v Lindholm [2009] FCAFC 125; (2009) 178 FCR 563 - Nicron Resources Ltd v Catto (1992) 8 ACSR 219 - Nordic Bank PLC v International Harvester Australia Ltd [1983] 2 VR 298 - Primacon Holding GmbH v Credit Agricole [2011] EWHC 3476 (Ch); [2013] BCC 201 - Re Amcom Telecommunications Ltd [2015] FCA 341 - Re Aston Resources Ltd [2012] FCA 229 - Re Atlas Iron Ltd [2016] FCA 366; (2016) 112 ACSR 554 - Re Cashcard Australia Ltd [2004] FCA 223; (2004) 48 ACSR 738 - Re Castle Holdco 4 Ltd [2009] EWHC 3919 (Ch) - Re Central Pacific Minerals NL [2002] FCA 239 - Re Cortefiel SA [2012] EWHC 2998 - Re CSR Ltd [2010] FCAFC 34; (2010) 183 FCR 358 - Re David Jones Ltd (No 2) [2014] FCA 720; (2014) 101 ACSR 381 - Re DUET Finance Ltd [2017] NSWSC 415 - Re Eastern Star Gas Ltd [2011] FCA 1225 - Re Foster's Group Ltd (No 2) [2011] VSC 547 - Re Foundation Healthcare Ltd [2002] FCA 742; (2002) 42 ACSR 252 - Re Gallery Capital SA (EWHC, unreported, 21 April 2010) - Re Glencore Nickel Pty Ltd [2003] WASC 18; (2003) 44 ACSR 210 - Re HIH Casualty and General Insurance Ltd [2006] NSWSC 485; (2006) 200 FLR 243 - Re Hills Motorway Ltd [2002] NSWSC 897; (2002) 43 ACSR 101 - Re Homemaker Retail Management Ltd [2001] NSWSC 1058; (2001) 40 ACSR 116 - Re iSOFT Group Ltd [2011] FCA 680 - Re Jax Marine Pty Ltd [1967] 1 NSWR 145 - Re Macquarie Private Capital A Ltd [2008] NSWSC 323; (2008) 26 ACLC 366 - Re Nine Entertainment Group Ltd [2012] FCA 1464; (2012) 211 FCR 439 - Re Opes Prime Stockbroking Ltd (No 2) [2009] FCA 813; (2009) 179 FCR 20 - Re Price Mitchell Pty Ltd [1984] 2 NSWLR 273 - Re Sylvastate Ltd [2011] FCA 211 - Re Telewest Communications plc [2004] EWHC 924 (Ch); All ER (D) 276 - Re Wattyl Ltd [2010] FCA 854 - Sovereign Life Assurance Co v Dodd [1892] 2 QB 573 - UDL Argos Engineering & Heavy Industries Co Ltd v Li Oi Lin [2001] HKCU 1184; 3 HKLRD 634 Texts Cited: - T Damien and A Rich, Schemes, Takeovers and Himalayan Peaks (3rd ed, 2013) Category: Principal judgment Parties: Boart Longyear Limited (First Plaintiff) Boart Longyear Management Pty Limited (Second Plaintiff) Boart Longyear Australia Pty Limited (Third Plaintiff) Votraint No. 1609 Pty Limited (Fourth Plaintiff) Representation: Counsel: I M Jackman SC/M A Izzo (Plaintiffs) M Oakes SC (Centerbridge Partners LP) N C Hutley SC/T L Wong/L McGovern (First Pacific Advisors LLC) P M Wood (Ares Management LP and Ascribe II Investments LLC)