Kellow, in the matter of Advanced Building & Construction Limited (in liq) v Advanced Building & Construction Limited (in liq) (No 2)

The liquidators of Advanced Building & Construction Limited, a New Zealand-registered company, applied to the Federal Court for the recognition of a foreign liquidation proceeding and associated orders. The liquidators sought to have the liquidation recognised as a foreign proceeding and a foreign main proceeding under the UNCITRAL Model Law on Cross-Border Insolvency, which is incorporated into Australian law via the Cross-Border Insolvency Act 2008. They also sought various interlocutory orders that would be applicable if the liquidation were an Australian proceeding under the Corporations Act 2001.

The court had to determine whether the New Zealand liquidation qualified as a "foreign proceeding" and a "foreign main proceeding" under the Model Law. This required an examination of whether the liquidation met the criteria set out in the Model Law, specifically Articles 2(a) and 2(b). The court also had to decide if it was appropriate to make interlocutory orders under Article 21 of the Model Law immediately following recognition.

The court found that the New Zealand liquidation met the criteria for recognition as a foreign proceeding and foreign main proceeding under the Model Law. It noted that the liquidators had complied with service requirements and that the New Zealand proceeding was substantively similar to an Australian liquidation under the Corporations Act. The court considered it appropriate to make the interlocutory orders under Article 21, as the circumstances warranted a unified and coordinated approach to the administration of the company's assets and affairs across jurisdictions.

The court granted the liquidators' application for recognition and made the associated interlocutory orders. These orders included stays on individual actions and enforcement of judgments, suspension of the transfer or encumbrance of assets, entrustment of Australian assets to the liquidators, and conferral of powers and examination rights. The court also ordered specific service and publication of the orders to ensure proper notification to relevant parties.