In the matter of BIS Finance Pty Limited; In the matter of Artsonig Pty Limited [2017] NSWSC 1713
Hearing dates:
17 November 2017
Decision date:
08 December 2017
Jurisdiction:
Equity - Corporations List
Before:
Black J
Decision:
The Court orders pursuant to s 411 of the Corporations Act 2001 (Cth) that the Plaintiffs convene meetings of creditors for the purpose of considering and, if thought fit, agreeing to the proposed schemes of arrangement.
Catchwords:
CORPORATIONS — Scheme of arrangement — Application for order convening meetings of creditors to consider schemes of arrangement – where two interdependent creditors’ schemes proposed to effect broader restructuring – where schemes provide for debt-to-equity swap, standstill period and variation of loan documentation – whether requirements to order scheme meetings satisfied – appointment of foreign representative.
[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.
[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.
[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.
Consideration
[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.
[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.
Continue reading Re BIS Finance Pty Ltd
Sign in free to access the full text
Details
AGLC
Re BIS Finance Pty Ltd [2017] NSWSC 1713
Case
[2017] NSWSC 1713
Decision Date
CaseChat Overview and Summary
BIS Finance Pty Ltd was the subject of an application by two of its creditors for an order convening meetings of creditors to consider proposed schemes of arrangement. The applicants sought an order under section 411(2)(b) of the Corporations Act 2001 (Cth) to convene meetings of creditors. The defendants, BIS Finance and its related entities, did not oppose the application. The court was required to determine whether the requirements to order the scheme meetings were satisfied, including whether the applicants had standing to make the application and whether the schemes provided for the fair and equitable treatment of creditors.
The court found that the applicants had standing to make the application as they were creditors with provable claims exceeding $20,000 each. The court also found that the proposed schemes provided for the fair and equitable treatment of creditors, as they involved a debt-to-equity swap, a standstill period, and variation of loan documentation. The court noted that the schemes were interdependent and that the proposed restructuring was in the best interests of the company and its creditors. The court was satisfied that the requirements to order the scheme meetings were met and made the orders sought by the applicants.
The court appointed a foreign representative to act on behalf of a creditor that held assets in a foreign jurisdiction. The orders included convening meetings of creditors to consider the proposed schemes of arrangement and appointing the foreign representative. The court also made orders for the service of documents and the provision of information to creditors. The orders were made in accordance with the provisions of the Corporations Act.