In a judgment delivered earlier today, the Queensland Supreme Court upheld a statutory demand served by Charter Pacific Corporation Limited (Charter) on Securicom (NSW) Pty Ltd (Securicom) for repayment of loans worth $338,438.89. Securicom had commenced legal proceedings in an attempt to have Charter’s demand set aside in full. As Securicom’s attempt was unsuccessful, Charter also was awarded its costs of the legal proceedings by the Supreme Court.
The Supreme Court found that, in relation to loans worth $338,438.89, Securicom had failed to demonstrate that there was any genuine dispute in relation to those loans; failed to demonstrate that Securicom had any off-setting claim against Charter; and, failed to demonstrate that there was any defect in the demand that would give rise to substantial injustice in respect of those loans.
Securicom now has 7 days from the date of the judgment to pay back to Charter the amount of $338,438.89. If it fails to do so, a presumption of insolvency will arise in relation to Securicom which could form the basis of an application by Charter to wind up the company in insolvency.
Charter claims that Securicom actually owes Charter in excess of an additional $100,000 in loans, plus the amount the subject of the judgment today, but it plans to work with Securicom in good faith in an attempt to recover all outstanding amounts without the need for further litigation. Charter will keep shareholders up to date accordingly.