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ARTICLE · 09 JULY 2024

Provisional liquidators bag prize promotion

Corrs Chambers Westgarth
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Provisional liquidators can be appointed after a winding up application is made to preserve a company's assets.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Craig Ensor
Craig Ensor
Andrew Edington
Andrew Edington
Hannah Tsavalas
Hannah Tsavalas
Danny Sobel
Danny Sobel
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In Davis-Jacenko v Roxy's Bootcamp Pty Limited [2024] NSWSC 702, McGrath J delivered an extempore decision, appointing provisional liquidators in respect of Roxy's Bootcamp Pty Limited (the Company). His Honour stated that it was "a paradigm case" for the court to intervene to preserve the status quo.

Key Takeaways

  • Provisional liquidators may be appointed by the court where there are reasonable prospects that a winding up order will be made in respect of the company, and where necessary to manage the company's affairs prior to formal winding up proceedings.

  • Winding up of a company on the "just and equitable" ground is likely to be available where there is a justifiable lack of confidence in the conduct and management of the company's affairs and accordingly, a risk to the public interest.

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