Pooling orders allow the debts and claims of multiple insolvent companies to be grouped together and treated as one. This enables the liquidator to conduct a single liquidation instead of several separate ones. The rationale behind this is it minimises costs in administrating the liquidation and enhances the distribution of payments to priority creditors, especially when the insolvent companies are part of a complex corporate structure.
The regime for the grant of a pooling order under section 579E(1) of the Corporations Act 2001 (Cth) (‘Act’) requires at least one of four conditions or ‘gateways’ under section 579E(1)(b) must be satisfied for the Court to consider whether the pooling order is ‘just and…
