The Court held that a company relying on a related entity's loan facility to rebut the presumption of insolvency must adduce cogent evidence not only of the related entity's contractual obligation to fund, but also of the related entity's actual capacity to do so — here, the chain of funding depended on third-party lenders (High West and Brookland) whose willingness and ability to advance further funds was not established on the evidence. The Court also declined to exercise its residual discretion under s 467 to refuse winding up so as to allow the company to pursue Federal Court proceedings challenging the debts, holding that the proceeding was in its infancy, the company proposed to recommence trading without addressing how creditors would be protected, and a liquidator could determine whether to continue the litigation in the public interest.
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