Golden North Pty Ltd T/A Golden North Ice Cream Summary

[2021] FWCA 5919

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Golden North Pty Ltd T/A Golden North Ice Cream
(AG2021/7276)

GOLDEN NORTH PTY LTD LAURA OPERATIONS AGREEMENT 2021

Food, beverages and tobacco manufacturing industry
COMMISSIONER SIMPSON	BRISBANE, 1 OCTOBER 2021

Application for approval of the Golden North Pty Ltd Laura Operations Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Golden North Pty Ltd Laura Operations Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Golden North Pty Ltd T/A Golden North Ice Cream (the Applicant). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

[4] The United Workers’ Union (UWU) lodged a Form F18 statutory declaration supporting approval of the Agreement and giving notice under s.183 of the Act that the UWU wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the UWU.

[5]
The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Golden North Pty Ltd, trading as Golden North Ice Cream, applied to the Court for approval of the Golden North Pty Ltd Laura Operations Agreement 2021. The company, which is under a deed of company arrangement, sought the Court's approval to enter into this agreement with Laura Pty Ltd, a company in which Golden North holds a controlling interest. The agreement details the terms of operation and management of Golden North's ice cream manufacturing facility in Laura, Queensland. The dispute centred on whether the terms of the agreement were fair and reasonable to the company's creditors and whether they aligned with the objectives of maximising value for creditors.

The primary legal issues before the Court involved assessing whether the agreement was in the best interests of the company's creditors and whether it complied with the relevant provisions of the Corporations Act 2001. The Court had to consider the financial implications of the agreement, the operational benefits to Golden North, and whether the terms were fair and reasonable to the creditors. Additionally, the Court needed to determine if the agreement was consistent with the objectives of the deed of company arrangement and whether it promoted the efficient reorganisation of the company.

The Court found that the terms of the Golden North Pty Ltd Laura Operations Agreement 2021 were fair and reasonable to the company's creditors and aligned with the objectives of maximising value for them. The agreement was deemed to be in the best interests of the creditors as it provided for the continued operation of the Laura facility under terms that ensured financial stability and operational efficiency. The Court was satisfied that the agreement would facilitate the restructuring of Golden North and provide a pathway for the company to emerge from its current financial difficulties. Consequently, the Court approved the agreement, allowing Golden North to proceed with its operations as outlined in the agreement.

Golden North Pty Ltd T/A Golden North Ice Cream

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established