Re Ellen Jay Health and Beauty Ltd

In the matter of Re Ellen Jay Health and Beauty Ltd, the court was presented with an application by the administrators of the respondent company, who sought to terminate a deed of company arrangement and wind up the company. The administrators argued that the deed should be terminated and the company wound up due to certain circumstances that arose during the course of the administration. The case was heard in the Federal Court of Australia.

The legal issues that the court was required to decide centred on the termination and avoidance of the deed of company arrangement, as well as the winding up of the respondent company. The administrators argued that the deed should be terminated under sections 445D(1)(d) and 445D(1)(e) of the Corporations Act 2001 (Cth) due to the company's inability to meet its financial obligations and the unlikelihood of the arrangement achieving its intended purpose. The court needed to determine whether the administrators' application was justified and whether the winding up of the company was the appropriate course of action.

The court considered the evidence and arguments presented by the administrators and found that the deed of company arrangement should indeed be terminated. The court held that the company was unable to meet its financial obligations and that the arrangement was unlikely to achieve its intended purpose. As a result, the court ordered the termination of the amended deed of company arrangement carried by resolution at a meeting of the company's creditors on 9 March 2011. The court also ordered the winding up of the respondent company and the appointment of Blair Alexander Pleash and Richard Albarran as joint and several liquidators for the purposes of the said winding up. Additionally, the costs of the application were ordered to be costs in the liquidation.

In conclusion, the court granted the administrators' application to terminate the deed of company arrangement and wind up the respondent company, appointing the liquidators and determining the costs of the application.