Significant decision on Part 15A voluntary administration

The High Court has issued its first major decision under Part 15A of the Companies Act, rejecting a multi-faceted challenge by Cargill International to the Solid Energy Deed of Company Arrangement (DOCA).

The ruling provides important guidance on the operation of New Zealand's voluntary administration regime.

Chapman Tripp acted for Solid Energy's lenders, the fourth respondents in the proceeding.

Background

Solid Energy was placed into voluntary administration in August 2015 with Messrs Gibson and Graham of KordaMentha appointed deed administrators. A draft DOCA was circulated and subsequently approved by an overwhelming majority of Solid Energy's creditors at a watershed meeting on 17 September 2015.