DD Investment WA Pty Ltd v Infinite Green Energy Limited

In the Federal Court of Australia, DD Investment WA Pty Ltd sought to appoint a provisional liquidator for Infinite Green Energy Limited, pursuant to section 472(2) of the Corporations Act 2001 (Cth). The plaintiff, DD Investment, alleged that Infinite Green Energy Limited was unable to pay its debts and was therefore insolvent, warranting the appointment of a provisional liquidator. The court was required to determine whether the plaintiff had reasonable prospects of obtaining a winding up order, particularly under the insolvency ground outlined in sections 459A and 459P of the Corporations Act 2001 (Cth). Additionally, the court needed to assess if there was a compelling reason to intervene before the final hearing of the winding up application, considering the undertakings provided by the parties.

The court examined the evidence presented by the plaintiff regarding the financial status of Infinite Green Energy Limited. The plaintiff argued that the company was indeed insolvent, as it had been unable to settle debts as they fell due, and there was an absence of a viable restructuring plan. The court considered the merits of the case, the likelihood of success at the final hearing, and the potential for irreparable harm to the company and its stakeholders if the application was not granted. Furthermore, the court assessed the undertakings provided by the parties and the balance of convenience, which favoured appointing a provisional liquidator. The court determined that the plaintiff had reasonable prospects of success and that there was a good reason for intervention prior to the final hearing.

Consequently, the court granted the application for the appointment of a provisional liquidator. The decision was based on the plaintiff's reasonable prospects of success in obtaining a winding up order and the compelling reason for intervention. The court concluded that it was in the best interest of the company and its stakeholders to proceed with the appointment of a provisional liquidator to safeguard the company's assets and ensure a fair and orderly process during the winding up proceedings.