In the matter of Boart Longyear Limited (No 2) [2017] NSWSC 1105

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Boart Longyear Limited (No 2) [2017] NSWSC 1105 Hearing dates: 4 and 5, 13, 14, 27 July, 9, 14 August 2017 Decision date: 22 August 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court approves the proposed schemes of arrangement as altered pursuant to s 411 of the Corporations Act 2001 (Cth) Catchwords: CORPORATIONS — Arrangements and reconstructions — Schemes of arrangement or compromise — Applications for approval of creditors' schemes of arrangement – where Plaintiffs seek approval of schemes in altered form – whether schemes would be approved by honest and intelligent creditor – whether schemes unfair to shareholders – whether schemes unlawful – whether schemes should be approved with alterations Legislation Cited: - Australian Securities and Investments Commission Act 2001 (Cth) - Companies Act 1936 (NSW), s 133 - Companies Act 1958 (Vic), s 92 - Companies Code, s 315(6) - Corporations Act 2001 (Cth), Chs 2E–2F, 6, Pts 2J.1, 5.1, ss 12, 53, 208, 210–229, 233, 259A(c), 411, 553, 563A(2), 606, 611, 625(1) - Corporations Amendment (Sons of Gwalia) Act 2010 (Cth) - Corporations Law, s 15 - Corporations Regulations 2001 (Cth), reg 5.6.23, Sch 8 cl 8303 - Evidence Act 1995 (NSW), s 136 - Joint Stock Companies Arrangement Act 1892 (NSW) - Securities Act 1933 (US), s 3(a)(10) - Supreme Court (Corporations) Rules 1999 (NSW), r 2.13 - Uniform Companies Act 1961, s 181 Cases Cited: - Australasian Meat Industry Employees Union v Meat & Allied Trades Federation of Australia [1991] FCA 672; (1991) 32 FCR 318 - Australian Securities & Investments Commission v Australian Investors Forum Pty Ltd (No 2) [2005] NSWSC 267; (2005) 53 ACSR 305 - Australian Securities Commission v Marlborough Gold Mines Ltd [1993] HCA 15; (1993) 177 CLR 485 - Australian Trade Commission v WA Meat Exports Pty Ltd (1987) 14 ALD 314; 75 ALR 287; 7 AAR 248 - Bacnet Pty Ltd v Lift Capital Partners Pty Ltd (in liq) [2010] FCAFC 36; (2010) 183 FCR 384 - Bank of Western Australia Ltd v Ocean Trawlers Pty Ltd (19950 13 WAR 407; 16 ACSR 501 - Bateman v Newhaven Park Stud Ltd [2004] NSWSC 566; (2004) 207 ALR 406; 49 ACSR 597 - British America Nickel Corporation Ltd v M J O'Brien Ltd [1927] AC 369 - Buzzle Operations Pty Ltd (in liq) v Apple Computer Australia Pty Ltd [2010] NSWSC 233; (2010) 238 FLR 384; 77 ACSR 410 - Carruth v Imperial Chemical Industries Ltd [1937] AC 707 - First Pacific Advisors LLC v Boart Longyear Ltd [2017] NSWCA 116 - Fowler v Lindholm [2009] FCAFC 125; (2009) 178 FCR 563 - Goodfellow v Nelson Line (Liverpool) Ltd [1912] 2 Ch 324 - IPT Systems Ltd v MTIC Corporate Pty Ltd [2000] WASC 316; (2000) 158 FLR 349; 36 ACSR 454 - Mercedes Holdings Pty Ltd v Waters (No 2) [2010] FCA 472; (2010) 186 FCR 450; 78 ACSR 118 - Mount Gibson Iron Ltd [2008] ATP 4 - Orrong Strategies Pty Ltd v Village Roadshow Ltd [2007] VSC 1; (2007) 207 FLR 245 - Perpetual Custodians Ltd (as custodian for Tamoran Pty Ltd as trustee for Crivelli) v IOOF Investment Management Ltd [2013] NSWCA 231; (2013) 304 ALR 436 - Phosphate Co-operative Co of Australia Pty Ltd v Shears (No 3) [1989] VR 665 - Primacon Holding GmbH v Credit Agricole [2011] EWHC 3746 (Ch); [2013] BCC 201 - Re Alabama, New Orleans, Texas and Pacific Junction Railway Co [1891] 1 Ch 213 - Re Aldridge Uranium Ltd (No 2) [2010] FCA 1424 - Re Amcom Telecommunications Ltd (No 4) [2015] FCA 720; (2015) 107 ACSR 341 - Re Anglo American Insurance Ltd [2001] 1 BCLC 755 - Re Anglo-Continental Supply Co Ltd [1922] 2 Ch 723 - Re Apcoa Parking Holdings GmbH [2014] EWHC 3849 (Ch); [2015] 4 All ER 572 - Re Application of NRMA Ltd (No 1) [2000] NSWSC 82; (2000) 156 FLR 349 - Re Application of NRMA Ltd (No 2) [2000] NSWSC 408; (2000) 156 FLR 412 - Re Aston Resources Ltd [2012] FCA 229 - Re Atlantic Gold NL (No 2) [2014] FCA 869 - Re Atlas Iron Ltd [2016] FCA 366; (2016) 112 ACSR 554 - Re Atlassian Corporation Pty Ltd [2013] FCA 1451 - Re Australian Co-operative Foods Ltd [2008] NSWSC 1221 - Re Bluebrook Ltd [2009] EWHC 2114; [2010] 1 BCLC 338 - Re Boart Longyear Ltd [2017] NSWSC 567 - Re Boart Longyear Ltd [2017] NSWSC 756 - Re British Aviation Insurance Co Ltd [2005] EWHC 1621 (Ch); [2006] 1 BCLC 665 - Re BRL Hardy Ltd [2003] SASC 97; (2003) 45 ACSR 397 - Re BTR Plc [2000] 1 BCLC 740 - Re Central Pacific Minerals NL [2002] FCA 239 - Re Centro Properties Ltd (in its capacity as responsible entity of Centro Property Trust) [2011] NSWSC 1465; (2011) 86 ACSR 584 - Re Chevron (Sydney) Ltd [1963] VR 249 - Re City of Melbourne Bank Ltd (1897) 19 ALT 80 - Re CSR Ltd [2010] FCAFC 34; (2010) 183 FCR 358; 77 ACSR 592 - Re David Jones Ltd (No 2) [2014] FCA 720; (2014) 101 ACSR 381 - Re Dee Valley Group Plc [2017] EWHC 184 (Ch) - Re Direct Acceptance Corporation Ltd (1987) 5 ACLC 1037 - Re Dominion Insurance Company of Australia Ltd (subject to scheme of arrangement) [2017] NSWSC 730 - Re English, Scottish and Australian Chartered Bank [1893] 3 Ch 385 - Re Equitable Life Assurance Society [2002] EWHC 140 (Ch); All ER (D) 109; 2 BCLC 510 - Re Glendale Land Development Ltd (in liq) [1982] 2 NSWLR 563; (1982) 7 ACLR 171; 1 ACLC 562 - Re Hawk Insurance Co Ltd [2001] EWCA Civ 241; 2 BCLC 480 - Re HIH Casualty and General Insurance Ltd [2005] NSWSC 240; (2005) 190 FLR 398; 53 ACSR 12 - Re HIH Casualty and General Insurance Ltd [2006] NSWSC 485; (2006) 57 ACSR 791 - Re Holders Investment Trust Ltd [1971] 2 All ER 289; 1 WLR 583 - Re Independent Practitioner Network Ltd (No 2) [2008] FCA 1593; (2008) 26 ACLC 1249 - Re Investorinfo Ltd [2005] FCA 1848; (2005) 24 ACLC 44 - Re Jax Marine Pty Ltd [1967] 1 NSWR 145 - Re Kalgoorlie Lake View Pty Ltd [2005] FCA 1440; (2005) 56 ACSR 144 - Re Landmark Corporation Ltd [1968] 1 NSWR 759 - Re Linton Park Plc [2005] EWHC 3545 (Ch); [2008] BCC 17 - Re Matine Ltd (1998) 28 ACSR 268 - Re National Bank Ltd [1966] 1 All ER 1006; 1 WLR 819 - Re PCCW Ltd [2009] HKCA 177; 3 HKC 292 - Re Permanent Trustee Co Ltd [2002] NSWSC 1177; (2002) 43 ACSR 601 - Re Professional Investment Holdings Ltd (No 2) [2010] FCA 1336 - Re Seven Network Ltd (No 3) [2010] FCA 400; (2010) 267 ALR 583; 77 ACSR 701 - Re Stemcor (SEA) Pte Ltd [2014] EWHC 1096 (Ch); 2 BCLC 373 - Re Summit Resources (Aust) Pty Ltd [2012] WASC 125; (2012) 42 WAR 401; 88 ACSR 60 - Re TDG Plc [2008] EWHC 2334 (Ch); [2009] 1 BCLC 445 - Re Telewest Communications Plc (No 1) [2004] EWHC 924 (Ch); [2005] 1 BCLC 752 - Re Telewest Communications Plc (No 2) [2004] EWHC 1466 (Ch); [2005] 1 BCLC 772 - Re V & M Diagnostic Services Pty Ltd (1985) 9 ACLR 663 - Re Wollongong Coal Ltd [2017] NSWSC 201; (2017) 317 FLR 426 - Sovereign Life Assurance Company v Dodd [1892] 2 QB 873 - UDL Argos Engineering and Heavy Industries Co Ltd v Li Oi Lin [2001] HKCFA 19; [2002] 1 HKC 172; [2001] 3 HKLRD 634 - Waters v Mercedes Holdings Pty Ltd [2012] FCAFC 80; (2012) 203 FCR 218; 90 ACSR 45 - Winepros Ltd [2002] ATP 18; (2002) 43 ACSR 566 - Zenyth Therapeutics Ltd v Smith [2006] VSC 436; (2006) 60 ACSR 548 Texts Cited: - T Damien and A Rich, Schemes, Takeovers and Himalayan Peaks (3rd ed, 2013) - L Gullifer and J Payne, Corporate Finance Law, Principles and Policy (2nd ed, 2015) - G B Parker and M Buckley, Buckley on the Companies Acts (14th ed, 1981) 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/R Higgins/M Izzo/L Rich (Plaintiffs) M Oakes SC (Centerbridge Partners LP) J Gleeson SC/N Bender (First Pacific Advisors LLC) P M Wood (Ares Management LP and Ascribe II Investments LLC) R P Austin/N Mirzai (Snowside Pty Limited as trustee for the Snowside Trust and Maurici Nominees Pty Ltd as trustee for AP Maurici & Associates Pty Ltd Superannuation Fund) D Barnett (Australian Securities & Investments Commission) (amicus curiae)