In the matter of SurfStitch Group Limited [2018] NSWSC 164

Supreme Court New South Wales

Medium Neutral Citation: In the matter of SurfStitch Group Limited [2018] NSWSC 164 Hearing dates: Monday, 19 February 2018 Date of orders: 22 February 2018 Decision date: 22 February 2018 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Para 27 Catchwords: CORPORATIONS – external administration – voluntary administration – second meeting – administrator's applications – where administrators anticipate surplus after payment of ordinary creditors –where subordinate claimants have a real interest in the administration - whether subordinate claimants should be entitled to vote – held, they should – modification of operation of Corporations Act, s 439A(3), (4) and 449E(7) in connection with the giving of notice of second meeting to potential subordinate claimants – whether administrators would be justified in rejecting claims not submitted by the time specified in the notice of meeting – held, they would - modification of operation of Corporations Act, s 439(C)(a) so that creditors may not resolve that the company execute a deed of company arrangement which contemplates a distribution to subordinate claimants before other debts unless first approved by ordinary creditors Legislation Cited: (CTH) Corporations Act 2001, s 437F, s 439A, s 447A, s 563A, s 600H, s 1551, s 1605 (CTH) Corporations Amendment (Sons of Gwalia) Act 2010 (CTH) Corporations Regulations 2001, reg 5.6.23, reg 5.6.26 (CTH) Insolvency Law Reform Act 2016, Sch 2 Cases Cited: Atlas Iron Ltd, Re [2016] FCA 366; (2016) 112 ACSR 554 Boart Longyear Ltd (No 2), Re [2017] NSWSC 1105 Bovis Lend Lease Pty Ltd v Wily (2003) 45 ACSR 612 Kirwan v Cresvale Far East Pty Ltd (2002) 44 ACSR 21 Park, in the matter of SurfStitch Group Limited [2017] FCA 1221 QRxPharma Ltd, Re [2015] FCA 1140; (2015) 235 FCR 456 Selim v McGrath [2003] NSWSC 927; (2003) 47 ACSR 537 Sovereign MF Ltd (in liq), Re [2014] VSC 681 SurfStitch Holdings Pty Limited, In the matter of [2017] NSWSC 1827 TEN Network Holdings Limited, In the matter of [2017] NSWSC 1247 Category: Principal judgment Parties: John Richard Park, Quentin James Olde and Joseph Ronald Hansell in their capacity as joint and several administrators of SurfStitch Group Limited (administrators appointed) and SurfStitch Holdings Pty Limited (administrators appointed) (First Plaintiffs) SurfStitch Group Limited (administrators appointed) (Second Plaintiff) SurfStitch Holdings Pty Limited (administrators appointed) (Third Plaintiff)