Re Pacific Access Pty Ltd

This matter concerned an application by Pacific Access Pty Ltd (the applicant) for the winding up of a company, Pacific Access Holdings Pty Ltd (the respondent). The applicant sought winding up on the grounds that the respondent was unable to pay its debts. The application was heard in the Supreme Court of Queensland.

The primary legal issue before the Court was whether the respondent was insolvent and therefore unable to pay its debts, as required by section 459E of the Corporations Act 2001 (Cth). This involved determining whether the applicant had established a *prima facie* case of insolvency, which would then shift the onus to the respondent to demonstrate its solvency.

Justice Forno considered the evidence presented by both parties regarding the respondent's financial position. The Court applied the principles of insolvency law, including the cash flow test and the balance sheet test, to assess the respondent's ability to meet its financial obligations as they fell due. The Court found that the applicant had not discharged its burden of proof to establish that the respondent was unable to pay its debts.

Consequently, the application for winding up was dismissed.