In the matter of BBY Holdings Pty Ltd (receivers and managers appointed) (in liquidation) [2019] NSWSC 1272

Supreme Court New South Wales

Medium Neutral Citation: In the matter of BBY Holdings Pty Ltd (receivers and managers appointed) (in liquidation) [2019] NSWSC 1272 Hearing dates: 23 September 2019 Decision date: 23 September 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Directions to liquidator given as sought. Catchwords: CORPORATIONS — Winding up — Directions to liquidator — Group of companies carrying on business as one entity — Where insolvent trading claim compromised with insurer — Directions sought as to distribution of settlement between plaintiff companies — Whether distribution in equal amounts or proportional to size of companies' respective claims — Liquidator prefers proportional method — More likely to result in equitable distribution between all creditors — Directions made as sought — Direction for apportionment of costs in the same proportions between companies. Legislation Cited: Corporations Act 2001 (Cth), s 588M Insolvency Practice Schedule (Corporations), s 90-15 Cases Cited: In the matter of Octaviar Administration Pty Ltd (in liq) [2017] NSWSC 1556 Dean-Wilcox v Soluble Solution Hydroponics Pty Limited (1997) 42 NSWLR 209; (1997) 24 ACSR 79 In the matter of 7 Steel Distribution Pty Limited (in liquidation) (receivers and managers appointed) [2013] NSWSC 669 In the matter of Bevillesta Pty Ltd (in voluntary administration) (2011) 254 FLR 324; [2011] NSWSC 417 Korda v Silkchime Pty Ltd (2010) 243 FLR 269; [2010] WASC 155 In the matter of MF Global (2012) 267 FLR 27; [2012] NSWSC 994 In the matter of Direct Acceptance Corporation Ltd (Receiver Appointed) (in Liquidation) (2019) 136 ACSR 245; [2019] NSWSC 395 Re Danial Efrat Consulting Services (receiver appointed) (in liq) (1999) 91 FCR 154; [1999] FCA 412 Re Ansett Australia Ltd (2001) 39 ACSR 355; [2001] FCA 1439 In the matter of Dungowan Manly Pty Ltd (in liquidation) (2017) 124 ACSR 218; [2017] NSWSC 1771 Lewis & Templeton v LG Electronics Australia Pty Ltd (No 2) (2016) 48 VR 450; [2016] VSC 63 at [152] Vickers, in the matter of York Street Mezzanine Pty Ltd (in liq) (2011) 196 FCR 479; [2011] FCA 1028 Re Bell Group Ltd; Ex parte Woodings (2013) 97 ACSR 117; [2013] WASC 409 Re Great Southern Ltd (in liq) [2015] WASC 171 In the matter of BBY Limited (receivers and managers appointed) (in liquidation) [2019] NSWSC 998 In the matter of BBY Limited (receivers and managers appointed) (in liquidation) (2016) 116 ACSR 154; [2016] NSWSC 1366 In the matter of BBY Limited (receivers and managers appointed) (in liquidation) (No 2) (2018) 363 ALR 492; [2018] NSWSC 346 In the matter of BBY Limited (receivers and managers appointed) (in liquidation) (No 3) [2018] NSWSC 1718 In the matter of BBY Limited (receivers and managers appointed) (in liquidation) [2019] NSWSC 1272 Re Gunns Plantations (in liquidation) (receivers & managers appointed) (No 3) [2014] VSC 267 Re Spedley Securities Ltd (in liq) (1992) 9 ACSR 83; (1992) 10 ACLC 1,742 Humphris; in the matter of Hazelton Air Charter Pty Ltd v Mentha (2002) 41 ACSR 472; [2002] FCA 529 Dering v The Earl of Winchelsea (1787) 1 Cox 318; (1787) 29 ER 1184 HIH Claims Support Limited v Insurance Australia Limited (2011) 244 CLR 72; [2011] HCA 31 In the matter of Primespace Property Investment Limited (in liquidation) [2016] NSWSC 1821 Category: Principal judgment Parties: Stephen Ernest Vaughan and Ian Richard Hall in their capacity as liquidators of BBY Limited (receivers and managers appointed) (in liquidation) (ACN 006 707 777) and other companies (First Plaintiffs) BBY Limited (receivers and managers appointed) (in liquidation) (ACN 006 707 777) (Second Plaintiff) BBY Holdings Pty Ltd (receivers and managers appointed) (in liquidation) (ACN 075 187 432) (Third Plaintiff) Broker Services Australia Pty Ltd (in liquidation) (ACN 074 976 634) (Fourth Plaintiff) Representation: Counsel: Mr D Krochmalik (Plaintiffs)