Lechmere Financial Corp v Aspermont Ltd

Lechmere Financial Corp has applied to the Federal Court of Australia to wind up Aspermont Ltd, a public company listed on the Australian Stock Exchange. The application is based on two statutory demands made by Lechmere Financial Corp under s 459D of the Corporations Act 2001 (Cth). The defendant contests the application on several grounds, including that the statutory demands were not still in effect at the end of the compliance period, that the defendant was restrained from complying by a court order, and that the defendant is solvent and able to pay its debts as they fall due. The court was required to determine whether the statutory demands remained in effect and whether the defendant could satisfy them, in light of the interim injunction and the defendant's solvency.

The court found that the statutory demands were still in effect at the end of the compliance period, as the extension granted by the Supreme Court of Western Australia did not affect the statutory demand's status. The court also held that the interim injunction did not prevent the defendant from complying with the statutory demands, as the injunction was not a bar to the defendant paying the plaintiff. Regarding solvency, the court found that the defendant was not solvent, despite its ability to pay debts as they fell due, because it lacked sufficient assets to meet all its liabilities as they became due. The court accepted the defendant's financial statement, which showed a surplus of assets over liabilities, but noted that the defendant's cash reserves were insufficient to meet the statutory demands. The court also considered the defendant's future revenue prospects but found them insufficient to rebut the presumption of insolvency.

The court granted the application to wind up Aspermont Ltd, subject to certain conditions. The application will be adjourned until 18 November 2003, and the defendant must pay the amounts demanded by the statutory demands into court or discharge the interim injunction. If the defendant fails to comply with these conditions, the application will be granted, and the defendant will be wound up on the ground of insolvency. The court appointed Garry John Trevor of Ferrier Hodgson as liquidator for the winding up.