On 25 February 2010, orders were made appointing the Receivers as receivers and managers of the property of the Reef House Resort Scheme.
On 4 June 2010, this order was varied so that the Receivers had the power to sell the Reef House Properties subject to various conditions, including obtaining the Court’s approval of the sale.
On 16 November 2010, the Receivers entered into sale agreements.
On 30 November 2010, the Receivers filed an interlocutory process seeking the Court’s approval for the Receivers to enter into the sale agreements.
On 17 December 2010, orders were made that the Receivers were justified in settling the sale agreements for the following reasons:
(a) The Reef House Properties are not exclusively property of the Reef House Resort Scheme.
(b) The interests of all creditors and other stakeholders were relevant to the exercise of the power of sale and had to be given due and proper regard.
(c) Even though the sale price was below the estimated market value of the Reef House Properties, pursuant to s 420A of the Corporations Act the Receivers took all reasonable care in their sale because:
· The sale process adopted was in accordance with the Orders made by the Court on 4 June 2010. This involved the Receivers engaging experienced real estate agents to conduct the sale process and, after consultation with relevant stakeholders, accepting the agent’s advice as to how to best market and sell the Reef House Properties. The Reef House Properties were advertised for sale on the open market resulting in arm’s length dealings between the Receivers and potential purchasers.
· There were difficulties with the Reef House Properties. They are located in a tourism area that suffered as a result of the global financial crisis, and were in need of significant and extensive building works to be carried out immediately.
Relevant paragraphs of Ford