Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Cedenco liquidators raise judge's ire using NZ data in Oz

Cedenco liquidators raise judge's ire for using NZ data in Australian wind-up

By Paul McBeth

Nov. 27 (BusinessDesk) - The firm hired for separate liquidations of the Cedenco group of companies in Australia and New Zealand has been ticked off by the High Court for using information gained during the New Zealand administration in its work across the Tasman.

In the High Court in Auckland, Justice Paul Heath took a dim view of the Cedenco liquidators' use of a transcript interview with ANZ New Zealand relationship manager Kate Dekker for its Australian liquidation before getting her approval, according to a Nov. 15 judgment.

John Sheahan and Ian Lock of Sheahan Lock were appointed liquidators for both the Australian and New Zealand wind-ups, and were seeking retrospective approval from the court for their use of the transcript in Australia.

"Because Messrs Sheahan and Lock hold office as both Australian and New Zealand liquidators, they cannot, as Australian liquidators, assert that they did not know what they were doing, as New Zealand liquidators," the judge said. "In effect, they (as Australian liquidators) were parties to the misconduct of the New Zealand liquidators."

Justice Heath refused to give retrospective approval for sharing the material and urged the liquidators to disclose what has happened to the Australian Federal Court to seek orders on further use of the transcript.

"It is also open to ANZ NZ or Ms Dekker, in light of what I have said in this judgment, to apply to the Federal Court for such an order as they might think appropriate to forbid or limit the ability of any other person to inspect (or otherwise use) the transcript," he said.

ANZ Bank pulled the pin on Cedenco in 2009, appointing receivers when it breached an earnings covenant. The following year the Australian receivers sold those businesses for A$93 million to Japan's Kargomi, satisfying all creditors, while the New Zealand units were sold to Japan's Imanaki for $29.5 million, which also left a surplus.

Sheahan Lock were appointed liquidators to deal with the residue.

The firm did gain some ground as Justice Heath backed the $2.39 million in fees and expenses charged by the liquidators, turning down ANZ's assertion it had overcharged for its services to such an extent as to amount to misconduct.

The judge said it would take an extreme case where a liquidator's misconduct stepped on the rights of creditors where "there would be jurisdiction to exercise a discretion for the remuneration or expenses to be paid personally by a liquidator."

Justice Heath agreed with the liquidator's counsel that "'it is officious and an abuse of process' for ANZ NZ to attempt to put improper pressure on the liquidators by suggesting they have overcharged."

The liquidators were unsuccessful in their bid to obtain bank documents and another interview with ANZ's Dekker for the New Zealand administration, with the judge saying it would be "oppressive" to her and that the attempt to re-examine her "can, in my view, fairly be characterised as being for an ulterior purpose."

The judge adjourned an application for her to be examined by the Australian administration saying the liquidators can either file expert evidence on the point or seek a Federal Court direction under Australian law.

In an Aug. 14 update, Sheahan and Lock said they have paid out $3.03 million to unsecured creditors.

Creditors will be entitled to post-liquidation interest claims if there's sufficient surplus once the liquidators have wrapped up the residual matters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news