Shangri-La Construction Pty Ltd v GVE Hampton Pty Ltd (in liq)

In this case, Shangri-La Construction Pty Ltd sought to appoint a special purpose liquidator under the Corporations Act 2001 to recover losses incurred due to the insolvency of GVE Hampton Pty Ltd. The application was opposed by the primary liquidator of GVE Hampton Pty Ltd, who argued that Shangri-La Construction did not have creditor status and that the funding agreement did not comply with the requirements of the Act. The primary liquidator also raised concerns about the independence of the proposed liquidator and the fact that recovery proceedings were already underway.

The legal issues before the court were whether Shangri-La Construction had standing to apply for the appointment of a special purpose liquidator, whether the funding agreement complied with the requirements of the Act, and whether the proposed liquidator was independent. The court also had to consider whether the primary liquidator's opposition to the application was valid and whether the funding agreement would affect the standing of Shangri-La Construction as a creditor.

The court found that Shangri-La Construction had standing to apply for the appointment of a special purpose liquidator and that the funding agreement complied with the requirements of the Act. The court also found that the proposed liquidator was independent and that the primary liquidator's opposition to the application was not valid. The court held that the funding agreement did not affect the standing of Shangri-La Construction as a creditor.

The court made an order appointing a special purpose liquidator to recover losses incurred by Shangri-La Construction due to the insolvency of GVE Hampton Pty Ltd. The court also made orders for costs against the primary liquidator.