Coin Co International PLC (Administrators Appointed)
(Coin Co) was a company incorporated in the UK which conducted a
cash services business in the UK and a global currency exchange
business in various countries, including Australia.
In 2014, administrators were appointed to Coin Co in the UK by
court order. The administrators decided to wind up Coin Co's
operations in Australia. Accordingly, the administrators sought
orders in the Federal Court that the UK administration be
recognised as a 'foreign main proceeding' under the
Cross-Border Insolvency Act 2008 (Cth) (CBI
Act) and the realisation of all of Coin Co's assets in
Australia be entrusted to the Australian insolvency practitioners
appointed by the UK administrators (Foreign
The administrators considered that appointing the Foreign
Representatives would be in the best interests of Coin Co's
creditors, as it was more cost effective for the assets of Coin Co
to be sold in Australia.
The Court confirmed that the aims of the CBI Act are to ensure
co-operation between courts and authorities involved in
cross-border insolvency matters and provide a fair and efficient
administration of cross-border insolvencies, so that the interests
of creditors and debtors are protected.
The CBI Act applies where assistance is sought in Australia by a
foreign court or representative in connection with a foreign
proceeding, in which the assets and affairs of the debtor are
subject to control or supervision by the court for the purposes of
reorganisation or liquidation.
Foster J went on to make orders that:
The UK administration was a 'foreign main proceeding'
under the CBI Act - meaning that it was a proceeding taking place
in the jurisdiction where the debtor has its 'Centre of Main
The UK was Coin Co's COMI - on the basis that the majority
of Coin Co's operations, employees, creditors and assets were
based there; and
The Foreign Representatives would have the same powers as if
they had been appointed as liquidators of Coin Co under the
Corporations Act 2001 (Cth).
The effect of those orders was that:
All actions or proceedings in relation to Coin Co's assets,
rights, obligations or liabilities in Australia were stayed.
Execution against Coin Co's assets in Australia were
The right to deal with or dispose of any of Coin Co's
assets in Australia were suspended.
In today's global environment companies are increasingly
operating across jurisdictions. This decision is a good reminder of
how the CBI Act can work to ensure the cost-effective and efficient
administration of a cross-border insolvency.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
Most awarded firm and Australian deal of
Australasian Legal Business Awards
Employer of Choice for
Equal Opportunity for Women
in the Workplace (EOWA)
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
When determining if a DOCA is to be terminated, public interest can, and often will, outweigh any benefit to creditors.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).