Administrators proposing a DCA with a creditors' trust need only identify a 'sound' commercial reason for the structure, not the 'compelling' reason stipulated by ASIC Regulatory Guide 82. Where creditors would receive something under the trust structure but nothing in liquidation, that itself may constitute a sufficient commercial reason. The ASIC Guide is a policy document without binding effect on the Court. Administrators bear a 'heavy burden' of explaining to creditors the implications of the shift from the statutory regime to a trust structure, but if that burden is discharged and creditors give informed consent, the proposal will not constitute an abuse of Part 5.3A.
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