On an application to terminate a winding up under s 482 of the Corporations Act, undertakings by related party creditors not to serve statutory demands do not constitute effective subordination and do not remove those debts from the solvency assessment. Interest under s 563B is an absolute statutory obligation payable without demand, and creditors must be informed of the potential loss of this entitlement before the court can properly exercise its discretion to terminate the winding up.
The full text is available to signed-in members, including the 21 later cases that cite this judgment.
2 of the 21 citing cases carry a classified treatment. How each court treated it is available to signed-in members.