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ARTICLE · 14 DECEMBER 2017

Administrator appointment overrides an application to appoint a liquidator

This WA decision was a fine display of pragmatism and a reminder of the voluntary administration regime's effectiveness.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Pragmatism rules the day

The recent decision of The Minister for the Environment – v – Eclipse Resources Pty ltd (administrator appointed) handed down in the Supreme Court of Western Australia, is a fine display of pragmatism and a reminder of the voluntary administration regime's effectiveness.

Background

The Minister claimed that Eclipse Resources failed to pay a waste disposal levy over a six-year period. Eclipse's business was mining land (it owned or leased) to recover and sell limestone and virgin soil. It accepted a fee for "waste" soils from parties such as land developers seeking to dispose of unwanted or excess soils. Some of these soils were blended with other soils to create water retentive soils, which it then resold to land developers for large scale landscaping projects. Whatever soils were not blended and resold were buried in the void created from the original mining activities. Ultimately, over many decades, Eclipse intended to fill the void

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