Melhelm Pty Ltd, in the matter of Boka Beverages Pty Ltd (in liquidation) v Boka Beverages Pty Ltd (in liquidation)

The Federal Court of Australia was asked to consider an application by Boka Beverages Pty Ltd (in liquidation) to appoint special purpose liquidators. The primary liquidators of the company were unfunded, and Boka Beverages Pty Ltd (in liquidation) sought to appoint additional liquidators to conduct specific investigations and potentially pursue claims on behalf of the company. The key legal issue before the court was whether it was appropriate to appoint special purpose liquidators under section 90-15 of the Insolvency Practice Schedule (Corporations) (IPS) to conduct these investigations, given the circumstances of the case.

The court found that the circumstances warranted the appointment of special purpose liquidators. The court acknowledged the need for investigations into the solvency of the company, potential voidable transactions, and other matters specified in the application. The court also noted that the primary liquidators were unfunded, which could impede their ability to effectively investigate and pursue claims on behalf of the company. Furthermore, the applicant had offered to fund the special purpose liquidators, which addressed concerns about the potential financial burden on the company's estate. The court concluded that appointing special purpose liquidators was appropriate to ensure that the necessary investigations and claims were pursued effectively.

The court made orders appointing Mr Trent Andrew Devine and Mr Andrew John Spring as additional joint and several liquidators for specific purposes, including conducting investigations into the solvency of the company and potential voidable transactions. The primary liquidators were directed to assist the special purpose liquidators and refrain from exercising certain powers without their consent or leave of the court. The special purpose liquidators were required to report to the company's creditors and other liquidators annually. Additionally, the court granted leave to the parties to apply for extensions to the purposes of the special purpose liquidators' appointment and to seek approval of a funding agreement and retainer, as well as costs.