Lord, in the matter of Invigor Group Limited (administrators appointed)

The case involved Invigor Group Limited, a public company operating a data analytics business, and its administrators who were seeking to continue trading the business while limiting their personal liability for debts incurred through a funding agreement. The administrators applied to the court for orders under sections 443A(1) and 447A(1) of the Corporations Act 2001 and section 90-15 of the Insolvency Practice Schedule (Corporations). The court was required to decide whether the funding agreement was in the best interests of the creditors, and whether the administrators were justified in causing the company to enter into the agreement and draw down the funds. The court granted the application, finding that the funding agreement was in the best interests of the creditors, and that the administrators were justified in causing the company to enter into the agreement and draw down the funds. The court noted that it was not expected that administrators should expose themselves to substantial personal liabilities on account of such funding, and that the unsecured creditors had no interest in an order that sought to limit an administrator’s personal liability under such funding arrangements. The court also ordered that the administrators take reasonable steps to give notice of the orders to the company’s creditors and the Australian Securities and Investments Commission, and granted liberty to apply to vary the orders to any person who can demonstrate sufficient interest.
In summary, the court found in favour of the administrators and granted the orders sought, limiting their personal liability for debts incurred through the funding agreement. The court also found that the funding agreement was in the best interests of the creditors, and that the administrators were justified in causing the company to enter into the agreement and draw down the funds. The court ordered that the administrators take reasonable steps to give notice of the orders to the company’s creditors and the Australian Securities and Investments Commission, and granted liberty to apply to vary the orders to any person who can demonstrate sufficient interest.