The Court terminated a deed of company arrangement under s 445D(1)(c) on the basis that the administrators' report to creditors omitted material information — specifically, the absence of an independent valuation of mining tenements and the failure to disclose significant capital-raising discussions — which could reasonably be expected to have been material to creditors' voting decisions. The Court also found termination warranted under s 445D(1)(g) because the DOCA had the effect of shielding directors from investigation into potential insolvent trading and breaches of duties under ss 180–183, the contribution amount was de minimis relative to creditor claims and sourced internally rather than from third parties, and the company was likely to remain insolvent post-DOCA. Exercising discretion under s 447A, the Court appointed replacement liquidators with Queensland mining experience in lieu of the deed administrators, funded in part by the applicant creditor for the purpose of investigating claims against directors.
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