Danielle Woods obtained a successful judgment for a liquidator, Jason Porter of SV Partners in the recently decided, In the matter of Shire Lind Developments (NSW) Pty Ltd (in liq) [2024] NSWSC 1454. Shire Lind Developments was a special purpose vehicle that had been established in relation to a property development. It did not have any assets of its own nor an interest in the land being developed, but incurred all debts and liabilities in relation to the development.

Nixon J found that the insolvent trading claims against the company’s sole director and holding company were established. In relation to the contraventions of ss 588G and 588V of the Corporations Act 2001 (Cth) the plaintiffs were awarded compensation of over $1.53 million for the loss and damage suffered by the creditors of the company, the largest of which was the builder.

The liquidator was also successful in recovering two unfair preference payments received by a related company while Shire Lind Developments was insolvent pursuant to s 588FF of the Corporations Act.

The full judgment may be found here.