In the matter of BBY Holdings Pty Ltd (receivers and managers appointed) (in liquidation)

The case before the court involved BBY Holdings Pty Ltd, a company in liquidation with receivers and managers appointed. The dispute arose from a claim for insolvent trading that had been compromised with an insurer. The issue before the court was how the settlement should be distributed among the plaintiff companies in the group, which operated as a single entity. The liquidator preferred a distribution method that was proportional to the size of each company's respective claim, arguing it would result in a more equitable distribution among all creditors. The court considered the liquidator's preference and directed that the settlement should be distributed in the manner proposed, which was proportional to the size of the companies' respective claims. Additionally, the court directed that the apportionment of costs should follow the same proportions as the distribution of the settlement.