In the matter of Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 Hearing dates: 26 September and 19 October 2017 Decision date: 16 November 2017 Jurisdiction: Equity - Corporations List Before: Black J Decision: The Court gives the directions sought in the Plaintiffs' Amended Interlocutory Process filed on 26 September 2017 and the Interlocutory Process of David Kerr filed on 10 August 2017. Catchwords: CORPORATIONS — Winding up — Conduct of liquidation — Application for directions – where liquidators of two companies propose to settle claims between companies – where claims complex and expensive to litigate – where companies share many common creditors – whether settlement reasonable – whether liquidators justified in entering into and performing obligations under settlement deed. Legislation Cited: - Corporations Act 2001 (Cth), ss 477, 479(3), 511, 1617, Sch 2 s 90-15 - Insolvency Law Reform Act 2016 (Cth) Cases Cited: - Dean-Willcocks v Soluble Solution Hydroponics Pty Ltd (1997) 42 NSWLR 209 - Fortress Credit Corporation (Australia) II Pty Ltd v Fletcher [2015] NSWCA 85; (2015) 89 NSWLR 110; 105 ACSR 581 - Handberg v MIG Property Services Pty Ltd [2010] VSC 336; (2010) 79 ACSR 373 - Re Great Southern Managers Australia Ltd (in liq); Ex parte Jones, Weaver and Stewart [2014] WASC 312 - Re Mackie Group Pty Ltd (in liq) (in its capacity as trustee of the Jupelina Unit Trust) [2017] VSC 477 - Re MF Global Australia Ltd (in liq) [2012] NSWSC 994; (2012) 267 FLR 27 - Re Octaviar Administration Pty Ltd (in liq) [2015] NSWSC 516; (2015) 107 ACSR 1 - Re Octaviar Ltd (in liq) [2015] NSWSC 1621; (2015) 110 ACSR 72 - Re Octaviar Ltd (in liq) [2016] NSWSC 16 - Re Octaviar Ltd (in liq) and Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1005 - Re One.Tel Ltd [2014] NSWSC 457; (2014) 99 ACSR 247 - Re One.Tel Networks Holdings Pty Ltd [2001] NSWSC 1065; (2001) 40 ACSR 83 - Sanderson v Classic Car Insurances Pty Ltd (1985) 10 ACLR 115 - Sellars v Adelaide Petroleum NL [1994] HCA 4; (1994) 179 CLR 332 Category: Procedural and other rulings Parties: Amended Interlocutory Process filed by General Purpose Liquidators William John Fletcher and Katherine Elizabeth Barnet (First Plaintiffs on Interlocutory Process) Octaviar Limited (in liquidation) (Second Plaintiff on Interlocutory Process) Octaviar Administration Pty Ltd (in liquidation) (Third Plaintiff on Interlocutory Process) David John Kerr (Applicant)