AC Distribution Company - Case Update

The Court has rejected a request by the liquidators of AC Distribution Company for their indemnity costs in connection with a proceeding brought by them seeking judicial review of a decision by ASIC to authorise Atradius, a credit insurer of several trade creditors of companies within the Arrium Group, as an eligible applicant for the purposes of Div 1 of Pt 5.9 of the Corporations Act 2001 (Cth).

About two months after being given this status, Atradius sued the liquidators and some 60 financiers of the Arrium Group.

The Court found that Atradius was no longer a creditor of any Arrium Group entity and ASIC ultimately revoked Atradius’s eligible applicant status. The Court found that there was no basis to depart from the usual course that no order for costs be made where there has been no hearing on the merits.

Read the decision here.