Re Cashcard Australia Ltd

Cashcard Australia Limited sought an order from the Federal Court of Australia to wind up the company. The company, which operated a prepaid electronic payment card system, was in financial distress and unable to pay its debts as they fell due. The court had to consider whether the company met the criteria for winding up under section 459E of the Corporations Act 2001. The primary issue before the court was whether Cashcard Australia Limited was unable to pay its debts, as required by the statute. The company argued that it was not in a position to pay its debts due to its financial difficulties. The court examined the company's financial statements, debts, and overall financial position to determine if it met the statutory test.

The court found that Cashcard Australia Limited was indeed unable to pay its debts as they fell due. The company's financial statements and other evidence demonstrated a significant deficit between its liabilities and assets, indicating an inability to meet its financial obligations. The court concluded that the statutory test for winding up had been satisfied. Consequently, the court ordered the winding up of Cashcard Australia Limited. The orders were in line with the previously agreed short minutes of order, dated 27 February 2004.