Re Allseal Floor Preparations Pty Ltd (in liq)

Allseal Floor Preparations Pty Ltd was in liquidation and its liquidator sought leave to distribute a surplus in part by in-specie distribution and in part in cash. The liquidator applied to the Supreme Court of New South Wales, and the court was required to decide whether to grant special leave for the distribution under section 488(2) of the Corporations Act 2001 (Cth). The primary legal issue was whether the court should grant the liquidator's application to distribute the surplus partly in-specie and partly in cash, given the statutory provisions and relevant case law on the matter.

The court examined the statutory framework provided by section 488(2) of the Corporations Act 2001 (Cth), which mandates that a liquidator must apply for leave to distribute a surplus. The court considered the relevant case law, including the decision in Re Allseal Floor Preparations Pty Ltd (No 2), which had previously addressed the issue of in-specie distributions. The court noted that the liquidator's proposed distribution method was consistent with the statutory framework and relevant case law. The court also considered the practical implications of the proposed distribution, including the potential benefits for the creditors. After careful consideration of the statutory provisions and case law, the court determined that the liquidator's application for special leave to distribute the surplus partly in-specie and partly in cash was appropriate.

The court granted the liquidator's application for special leave to distribute the surplus partly in-specie and partly in cash. The court found that the proposed method of distribution was consistent with the statutory framework and relevant case law. The court also considered the potential benefits for the creditors and concluded that the proposed distribution was in the best interests of the creditors. The court's decision provided clarity on the issue of in-specie distributions and reinforced the importance of following the statutory framework and relevant case law in such matters.