Re Tronox Ltd (No 2)

Case [2019] FCA 681


FEDERAL COURT OF AUSTRALIA

Tronox Limited, in the matter of Tronox Limited (No 2) [2019] FCA 681

File number: VID 35 of 2019
Judge: O’CALLAGHAN J
Date of judgment: 22 March 2019
Date of publication of reasons: 21 May 2019
Catchwords: CORPORATIONS –– application under s 411(4)(b) of the Corporations Act 2001 (Cth) to approve schemes of arrangement – schemes approved
Legislation:

Corporations Act 2001 (Cth) s 411

Securities Act of 1933 15 U.S.C. §§ 77a-77mm (1934) (USA)

Cases cited:

Re Alabama, New Orleans, Texas and Pacific Junction Railway Company [1891] 1 Ch 213

Re AXA Asia Pacific Holdings Ltd (No 2) (2011) 82 ACSR 501; [2011] VSC 102

Re Coles Group Ltd (No 2) (2007) 65 ACSR 494; [2007] VSC 523

Re Equinox Resources Ltd (2004) 49 ACSR 692; [2004] WASC 143

Re Hostworks Group Ltd (No 2) [2008] FCA 248

Re NRMA Ltd (No 1) (2000) 33 ACSR 595; [2000] NSWSC 82

Re Spark Infrastructure Holdings No 1 Limited and Others (2010) 79 NSWLR 756

Re Tatts Group Limited (No 2) [2017] VSC 770

Re Wesfarmers Ltd; Ex Parte Wesfarmers Ltd (No 2) [2018] WASC 357

Registry: Victoria
Division: General Division
National Practice Area: Commercial and Corporations
Sub-area: Commercial Contracts, Banking, Finance and Insurance
Category: Catchwords
Number of paragraphs: 57
Counsel for the Plaintiff: M I Borsky QC with B K Holmes
Solicitor for the Plaintiff: Ashurst Australia

ORDERS

VID 35 of 2019

IN THE MATTER OF TRONOX LIMITED

TRONOX LIMITED
Plaintiff

JUDGE:

O’CALLAGHAN J

DATE OF ORDER:

22 March 2019

OTHER MATTERS:          

A.The Court received into evidence the following further affidavits in this proceeding:

(i)Second Affidavit of John Francis Sartori dated 25 February 2019 with annexure.

(ii)Affidavit of Edi Patricio Remache dated 7 March 2019 with annexures.

(iii)Affidavit of Anthony Saverio Vecchio dated 8 March 2019 with annexures.

(iv)Affidavit of Dennis Michael Sneyers dated 11 March 2019 with annexures.

(v)Affidavit of William Valentin dated 15 March 2019 with annexures.

(vi)Fourth Affidavit of Jeffrey Nathan Neuman dated 15 March 2019 with annexures.

(vii)Third Affidavit of John Francis Sartori dated 19 March 2019 with annexures.

(viii)Fourth Affidavit of John Francis Sartori dated 22 March 2019 with annexure.

B.There has been produced to the Court a statement in writing by the Australian Securities and Investments Commission (ASIC) in accordance with section 411(17)(b) of the Corporations Act 2001 (Cth) stating that ASIC has no objection to the Schemes of Arrangement referred to in this Order.

C.The New Tronox Shares to be issued pursuant to the Schemes of Arrangement (and as defined in the Schemes of Arrangement) will not be registered under the Securities Act of 1933 (USA) or the securities laws of any other state jurisdiction in the United States. In connection with the implementation of the Schemes and the issue of New Tronox Shares, Tronox and New Tronox intend to rely:

(i)on the Federal Court’s approval of the Schemes; and

(ii)on section 3(a)(10) of the Securities Act of 1933 (USA).

THE COURT ORDERS THAT:

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Details
AGLC
Re Tronox Ltd (No 2) [2019] FCA 681
Case
[2019] FCA 681
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the matter of Re Tronox Ltd (No 2) involved an application by Tronox Limited for approval of two schemes of arrangement under section 411(4)(b) of the Corporations Act 2001 (Cth). The schemes sought to alter Tronox's capital structure by restructuring its ordinary shares into two classes: Class A and Class B shares. The legal issues before the court were whether the schemes were fair and reasonable to all parties involved, particularly the shareholders, and whether the court should exempt Tronox from certain compliance requirements under the Act.

The court examined the fairness and reasonableness of the proposed schemes, considering the benefits and disadvantages to the shareholders, and whether the schemes complied with the statutory requirements. The court was also tasked with determining whether the court should exempt Tronox from the requirement to annex the orders approving the schemes to Tronox's constitution under section 411(11) of the Act, as requested by Tronox. The court found that the schemes were fair and reasonable to all parties, and that the exemption from annexing the orders to the constitution would serve no ongoing purpose. Therefore, the court approved the schemes and granted the exemption as requested.

Consequently, the court made orders approving the schemes of arrangement between Tronox and the holders of Class A and Class B ordinary shares in Tronox, and exempted Tronox from compliance with section 411(11) of the Act. The orders were to be entered forthwith, as per Rule 39.32 of the Federal Court Rules 2011. The schemes, as approved by the court, are annexed to the judgment and marked "A" and "B" respectively.

Orders

Orders of the court

1. Pursuant to subsection 411(4)(b) of the Corporations Act 2001 (Cth) (Act):

(a) the scheme of arrangement between the Plaintiff (Tronox) and the holders of Class A ordinary shares in Tronox, in the form annexed hereto and marked “A”, be and is hereby approved; and

(b) the scheme of arrangement between Tronox and the holder of Class B shares in Tronox, in the form annexed hereto and marked “B”, be and is hereby approved.

2. Pursuant to subsection 411(12) of the Act, Tronox be exempted from compliance with section 411(11) of the Act.

3. These Orders be entered forthwith.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

ANNEXURE A

ANNEXURE B

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

I agree that no ongoing purpose would have been served by requiring that the orders approving the Schemes be annexed to Tronox’s constitution. CONCLUSION For the foregoing reasons, which are in substance the reasons advanced by counsel for Tronox, I made the orders set out above.

Ratio Decidendi

Legal Principle Established

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