Re Goldwell AG

This matter concerned an application by Goldwell AG (the applicant) for an order that the respondent, a company incorporated in Australia, be wound up on the grounds of insolvency. The applicant, a company incorporated in Germany, sought to enforce a judgment obtained in Germany against the respondent. The application was heard in the Supreme Court of New South Wales.

The primary legal issue before the Court was whether the applicant had established that the respondent was unable to pay its debts within the meaning of the *Corporations Act 2001* (Cth). This involved determining whether the German judgment was a debt that could be enforced in Australia for the purposes of winding up proceedings, and whether the respondent had demonstrated its solvency.

The Court considered the principles of international comity and the enforcement of foreign judgments. It was held that a judgment obtained in a foreign court, which is final and conclusive and capable of being enforced in that foreign jurisdiction, can be the basis for a winding up application in Australia, provided it is for a liquidated sum. The Court found that the German judgment met these criteria. The respondent's submissions regarding its solvency were found to be unsubstantiated and speculative, failing to discharge the onus on it to prove it was not insolvent.

Consequently, the Court made orders for the winding up of the respondent company.