Georges (Liquidator), in the matter of Sonray Capital Markets Pty Ltd (in liq)

The liquidator of Sonray Capital Markets Pty Ltd, Georges, sought approval for a proposed mediation process that included an agreement limiting the use of information obtained during mediation. The liquidator was concerned about the ability to use information from the mediation to pursue claims against other parties potentially liable for losses suffered by Sonray's creditors. The court was required to determine whether the liquidator could be paid costs and remuneration out of trust money and whether the mediation agreement restricting the use of information obtained should be approved.

The court considered the relevant legislation and case law on the payment of liquidators' costs and remuneration from trust funds. The court found that liquidators could be paid from trust funds where it was necessary for the proper administration of the company's estate. The court also considered the potential benefits of the proposed mediation, including the possibility of resolving disputes more efficiently and at a lower cost than litigation. The court held that the mediation agreement limiting the use of information obtained was necessary to encourage parties to participate in the mediation process in good faith and should be approved.

The court approved the liquidator's application for costs and remuneration to be paid from trust funds and the proposed mediation agreement. The court noted that the liquidator had demonstrated that the mediation process was likely to be beneficial and that the restrictions on the use of information obtained were necessary to facilitate the mediation process. The court also noted that the liquidator had taken steps to ensure that the interests of Sonray's creditors were protected, including by seeking directions from the court to preserve the confidentiality of sensitive information.

The court made an order approving the liquidator's application for costs and remuneration to be paid from trust funds and the proposed mediation agreement. The court also made an order directing the parties to participate in good faith in the mediation process and to take all necessary steps to preserve the confidentiality of sensitive information. The court noted that the mediation process was voluntary and that any agreement reached would be subject to the court's approval.