FEDERAL COURT OF AUSTRALIA
Recall Holdings Limited, in the matter of Recall Holdings Limited (No 2)
[2016] FCA 419
File number: NSD 1230 of 2015 Judge: YATES J Date of judgment: 21 April 2016 Catchwords: CORPORATIONS – scheme of arrangement – second court hearing – application for approval Legislation: Corporations Act 2001 (Cth) ss 411, 412
Securities Act of 1933 (US) s 3
Cases cited: Recall Holdings Limited, in the matter of Recall Holdings Limited [2015] FCA 1142 Date of hearing: 21 April 2016 Registry: New South Wales Division: General Division National Practice Area: Commercial and Corporations Sub-area: Corporations and Corporate Insolvency Category: Catchwords Number of paragraphs: 15 Counsel for the Plaintiff: Mr IM Jackman SC Solicitor for the Plaintiff: Allens Counsel for Iron Mountain Incorporated: Mr P Brereton SC Solicitor for Iron Mountain Incorporated: Minter Ellison ORDERS
NSD 1230 of 2015 IN THE MATTER OF RECALL HOLDINGS LIMITED (ABN 27 116 537 832)
RECALL HOLDINGS LIMITED (ABN 27 116 537 832)
Plaintiff
JUDGE:
YATES J
DATE OF ORDER:
21 APRIL 2016
THE COURT ORDERS THAT:
1.Pursuant to s 411(4)(b) of the Corporations Act 2001 (Cth) (the Act), the scheme of arrangement between the plaintiff and its members (the scheme), in the form contained in Appendix 4 of the scheme booklet issued by the plaintiff and dated 23 October 2015, being Exhibit 1 in the proceeding, be approved.
2.The plaintiff lodge with the Australian Securities and Investments Commission a copy of the approved scheme at the time of lodging a copy of these orders.
3.Pursuant to s 411(12) of the Act, the plaintiff be exempted from compliance with s 411(11) of the Act in relation to the scheme.
4.The plaintiff be granted liberty to apply.
THE COURT NOTES THAT:
5.Iron Mountain Incorporated will rely on the Court’s approval of the scheme for the purposes of qualifying for exemption from the registration requirements of the Securities Act of 1933 (US), provided for by s 3(a)(10) of that Act, in connection with the implementation of, and the provision of consideration, under the scheme.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
YATES J:
The plaintiff, Recall Holdings Limited, seeks orders pursuant to s 411(4)(b) of the Corporations Act 2001 (Cth) (the Act) approving a scheme of arrangement, the terms of which are contained in Appendix 4 of the scheme booklet which is Exhibit 1 in the proceeding (the scheme).
On 22 October 2015, the Court made orders pursuant to s 411(1) of the Act providing for the convening of a meeting of members to consider the scheme and, if thought fit, agree to it, with or without modification (the scheme meeting): Recall Holdings Limited, in the matter of Recall Holdings Limited [2015] FCA 1142 (the earlier reasons).
Subsequent orders were made as follows:
·On 25 November 2015, the Court ordered, amongst other things, that the date for holding…
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- Case
- [2016] FCA 419
- Decision Date
CaseChat Overview and Summary
The court undertook a detailed analysis of the evidence and submissions provided by the parties. It examined the fairness and reasonableness of the scheme, considering the interests of both the company and its members. The court also took into account the potential impact of the scheme on creditors, minority shareholders, and other stakeholders. After careful consideration, the court concluded that the scheme was fair and equitable and in the best interests of the company and its members. The court also noted that the approval of the scheme would allow Iron Mountain Incorporated to qualify for an exemption from the registration requirements under the Securities Act of 1933 (US).
Accordingly, the court approved the scheme of arrangement in the form specified and ordered that the plaintiff company lodge a copy of the approved scheme with the Australian Securities and Investments Commission. Additionally, the court granted the plaintiff exemption from certain compliance requirements under the Corporations Act 2001 (Cth) and allowed the plaintiff to apply for further relief if necessary.
Orders
Orders of the court
1. Pursuant to s 411(4)(b) of the Corporations Act 2001 (Cth) (the Act), the scheme of arrangement between the plaintiff and its members (the scheme), in the form contained in Appendix 4 of the scheme booklet issued by the plaintiff and dated 23 October 2015, being Exhibit 1 in the proceeding, be approved.
2. The plaintiff lodge with the Australian Securities and Investments Commission a copy of the approved scheme at the time of lodging a copy of these orders.
3. Pursuant to s 411(12) of the Act, the plaintiff be exempted from compliance with s 411(11) of the Act in relation to the scheme.
4. The plaintiff be granted liberty to apply.
THE COURT NOTES THAT:
5. Iron Mountain Incorporated will rely on the Court’s approval of the scheme for the purposes of qualifying for exemption from the registration requirements of the Securities Act of 1933 (US), provided for by s 3(a)(10) of that Act, in connection with the implementation of, and the provision of consideration, under the scheme.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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