1297 KRL McMillans - Provisional Liquidation

Mathew Gollant of CJG Advisory has been appointed provisional liquidator of 1297 KRL McMillans, which carried on business as a dairy operation on owned property in Victoria.

One of the company’s creditors sought an order that the company be wound up, and certain members of the Thera Capital Management Group, a non-bank lender to the farming sector, brought an application seeking the appointment of a provisional liquidator until the making of a winding up order.

The Thera parties had also issued notices under the Farm Debt Mediation Act, and the company argued that the application should be adjourned to until after the mediation required under the Farm Debt Mediation Act (which is unlikely to take place before 15 April).

The Court appointed the provisional liquidator, finding that the prohibition under the Farm Debt Mediation Act on a creditor taking enforcement action under a farm mortgage does not include a prohibition on the commencement or prosecution of winding up proceedings. As a result, the Act did not prevent the appointment of a provisional liquidator in this case.

Read the decision here.