developments in deeds of company arrangement - DibbsBarker

this was not granted. The outcome of this case may have altered if relief had also beensought pursuant to section 447A from the outset.4.2 Winding-up in the best interests of creditorsIn Re Storm Financial Ltd (Receivers and Managers Appointed) (AdministratorsAppointed), 16 the Australian Securities and Investment Commission (ASIC) sought ordersfor a winding-up of the company prior to the second creditors’ meeting that wasscheduled to vote on a proposed DOCA.ASIC was relying on section 445D of the Corporations Act which provides that wherecourts are convinced that execution of a DOCA is not in the best interest of thecompany’s creditors, they may make an order to terminate the DOCA.FactsStorm Financial Ltd (Storm) was an Australian financial planning business with a highpublic profile in Northern Queensland. Following the collapse of the global economy inlate 2008, Storm indicated that its directors had resolved to appoint administrators overthe company. On 15 January 2009, the Commonwealth Bank of Australia, as a securedcreditor of Storm, appointed Receivers and Managers over the company and its property.Following the appointment of Administrators, who conducted a routine investigation ofthe company’s affairs, a second creditors’ meeting was called. The Administrators’ report16 [2009] FCA 269.11899717 v1 Brisbane 05 08 0916