Australian Stratacore Holdings Ltd (In liq) v Sanwa Australia Securities Ltd

In *Australian Stratacore Holdings Ltd (In liq) v Sanwa Australia Securities Ltd* [1994] NSWCA 11, the New South Wales Court of Appeal considered a dispute between the liquidator of Australian Stratacore Holdings Ltd and Sanwa Australia Securities Ltd. The liquidator sought to recover moneys paid by Stratacore to Sanwa, alleging these payments constituted voidable transactions under the *Companies (New South Wales) Code*.

The central legal issue before the Court of Appeal was whether the payments made by Stratacore to Sanwa were voidable as unfair preferences. This required the court to determine if Stratacore was insolvent at the time of the payments, if the payments were made to Sanwa in respect of a debt, and if the payments had the effect of giving Sanwa a preference over other creditors of Stratacore.

The Court of Appeal applied the principles established in cases concerning unfair preferences, focusing on the financial position of Stratacore at the relevant times. It examined the evidence presented regarding Stratacore's liabilities and assets to assess its solvency. The court ultimately found that the payments did not meet the criteria for an unfair preference, as Stratacore was not proven to be insolvent at the time the payments were made. Consequently, the appeal was dismissed.