Key Point
- Recent decisions have looked at two aspects of the issue of future creditors.
In two recent decisions the New South Wales Supreme Court has considered the position of "future creditors" in deciding whether to allow an insolvent company to resume trading.
Vero Workers Compensation v Ferretti [2006] NSWSC 292
Ferretti Pty Ltd was in liquidation. The directors developed a proposal for a Deed of Company Arrangement ("DOCA") with the object of allowing the company to resume trading.
Subsequently, the liquidator appointed himself as administrator of Ferretti under section 436B(2) of the Corporations Act 2001, having obtained the Court's leave to do so.
The liquidator/administrator recommended that the creditors enter into the DOCA. The creditors approved the DOCA. The liquidator then applied to the Court to terminate the winding-up.
