Re Green (as liq of Australian Resources Ltd (in liq))

In this case, the liquidator of Australian Resources Limited (in liquidation), in the person of Green, applied for an order to wind up the company in insolvency. The company was already under a creditors' voluntary winding up. The applicant argued that there would be advantages to the creditors if the company were wound up in insolvency instead. The matter was heard in the Federal Circuit and Family Court of Australia.

The court had to determine whether the application for an alternative winding up was appropriate given that the company was already under a creditors' voluntary winding up. The legal issues centred on whether there were circumstances that justified an order for winding up in insolvency when an alternative winding up was already in progress. The court considered the potential benefits to creditors from a winding up in insolvency, including the possibility of recovering greater dividends or realising assets more effectively.

The court found that there were indeed circumstances that justified an alternative winding up in insolvency. It held that the potential advantages to creditors, such as greater asset realisation and potentially higher dividends, warranted the change in the form of winding up. The court emphasised that the decision to order a winding up in insolvency should be made on a case-by-case basis, taking into account all relevant factors and the interests of the creditors. The court concluded that, in this instance, it was appropriate to order the winding up of the company in insolvency.

The court made an order that Australian Resources Limited (in liquidation) be wound up in insolvency. This decision was based on the potential benefits to creditors from a winding up in insolvency, which outweighed the disadvantages of altering an already established creditors' voluntary winding up process.