In the matter of Thrive Collective Pty Ltd (admins apptd) [2018] NSWSC 2049

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Thrive Collective Pty Ltd (admins apptd) [2018] NSWSC 2049 Hearing dates: 18 December 2018 Decision date: 18 December 2018 Jurisdiction: Equity - Corporations List Before: Black J Decision: Order that the First Plaintiffs not be personally liable to repay any debt or liability to the extent that their indemnity against the Second Plaintiff's property is insufficient to satisfy any debt or liability in respect of the loan agreement, and associated orders made. The orders be stayed until mid-morning, 21 December 2018. Catchwords: CORPORATIONS – external administration – application to limit administrators' personal liability – where proposal for the company to enter into a loan agreement to fully pay employee entitlements – where lenders be subrogated to position of the employees in a liquidation under s 560 of the Corporations Act 2001 (Cth) – whether entry into loan agreement is in the best interests of creditors – whether the application advances the interests of Pt 5.3A of the Corporations Act 2001 (Cth). Legislation Cited: - Corporations Act 2001 (Cth) Pt 5.3A, ss 443A, 447A, 560 Cases Cited: - Mentha, in the matter of Griffin Coal Mining Company Pty Ltd (admins apptd) [2010] FCA 1469; (2010) 82 ACSR 142 - Secatore, in the matter of Fletcher Jones and Staff Pty Ltd (admins apptd) [2011] FCA 1493 Category: Principal judgment Parties: Scott David Harry Langdon and Rahul Goyal in their capacity as joint and several administrators of Thrive Collective Pty Ltd (admins apptd) (First Plaintiff) Thrive Collective Pty Ltd (admins apptd) (Second Plaintiff) Representation: Counsel: M L Rose (Plaintiffs)