In the matter of Bytecan Pty Limited (in liquidation) [2019] NSWSC 1910

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Bytecan Pty Limited (in liquidation) [2019] NSWSC 1910 Hearing dates: 20 December 2019 Date of orders: 20 December 2019 Decision date: 20 December 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Approval under section 477(2A) of the Corporations Act 2001 (Cth) of entry into a deed of settlement compromising Bytecan's claims against Nokia Siemens Networks Australia Pty Limited.

Orders made under section 564 of the Corporations Act 2001 (Cth) to distribute the settlement proceeds, after payment of the special purpose liquidator's fees and expenses, to the plaintiff less the general purpose liquidator's remaining costs of the proceedings and estimated costs to complete the winding up. Catchwords: CORPORATIONS – approval of deed of settlement under section 477(2A) – power of court to give creditors advantage over others – meaning of "over others" in s 564 of the Corporations Act – whether extends to general purpose liquidator –– consideration of risk assumed by indemnifying creditor – whether indemnifying creditor received a 'windfall' – importance of liquidator having funds to complete tasks – deduction for general purpose liquidator's remaining costs of the proceedings and estimated costs to complete the winding up Legislation Cited: Bankruptcy Act 1966 (Cth), ss 108, 109 Corporations Act 2001 (Cth), ss 477(2A), 556, 564 Corporations Regulations 2001 (Cth), reg 5.4.02 Fair Entitlements Guarantee Act 2012 (Cth) Personal Property Securities Act 2009 (Cth) Cases Cited: Atco Controls Pty Ltd (in liq) v Stewart (in his capacity as liquidator of Newtronics Pty Ltd) [2013] VSCA 132 Australia and New Zealand Banking Group Ltd v TJF EBC Pty Ltd [2006] NSWSC 25; (2006) 224 ALR 490 Carson, In the matter of Trollope Property Holdings Pty Ltd (In Liquidation) (ACN 005 649 212) [2009] FCA 118 Deputy Commissioner of Taxation v Vintage Gold Investments Pty Limited (in liq) [2009] FCA 967 Household Financial Services Pty Limited v Chase Medical Centre Pty Limited (1995) 18 ACSR 294 Low v Barnet (2017) 250 FCR 562; [2017] FCAFC 60 Re Home Corp Projects (2002) 20 ACLC 1751; [2002] NSWSC 879 Re Rubix Investments Group Pty Ltd (in liq) [2018] NSWSC 1184 Robinson, in the matter of ACN 069 895 585 Pty Ltd (formerly known as Waterman Collections Pty Ltd (in liq) [2013] FCA 706 Stewart (in his capacity as liquidator of Newtronics Pty Ltd (recs and mgrs apptd) (in liq)) and Another v Atco Controls Pty Ltd (in liq) (2014) 252 CLR 307; [2014] HCA 15 Category: Principal judgment Parties: Apricity Finance Group (Plaintiff) Bytecan Pty Ltd (in liq) (First Defendant) Steve Nicols (Second Defendant) Representation: Counsel: Ms IJ King (Plaintiff) Mr D Nagle (First and Second Defendants)