In the matter of The Australian Wine Consumers’ Co-Operative Society Limited trading as The Wine Society (admin apptd) [2020] NSWSC 1437

Solicitors: Deutsch Miller (Plaintiff) File Number(s): 2020/227173

Judgment - ex tempore (Revised 7 August 2020)

1. By Originating Process filed on 4 August 2020, and returnable on an urgent basis, the Plaintiff, Mr Woodgate in his capacity as administrator of the Australian Wine Consumers' Co-operative Society Ltd (admin apptd) ("Wine Society") seeks, first, a direction under s 90-15 of the Insolvency Practice Schedule (Corporations) ("IPSC") that he is justified in proceeding on the basis that specified provisions of the IPSC and the Insolvency Practice Rules (Corporations) are applicable in the administration of the cooperative. He also seeks an order under s 447A of the Corporations Act 2001 (Cth) that Pt 5.3A of the Act is to operate in relation to the cooperative in such a way as to apply specified provisions of the IPSC and Insolvency Practice Rules in the administration of the Wine Society. Mr Santucci, who appears for Mr Woodgate, has pointed out that the orders sought parallel those that were made in Re University Co-operative Bookshop Ltd (admins apptd) (No 2) [2020] NSWSC 97; (2020) 142 ACSR 607.
2. Mr Woodgate relies on his affidavit dated 4 August 2020, which refers to his appointment to the Wine Society and to the character of that organisation as a non-profit organisation with approximately 20,000 members, which previously carried on business in respect of the purchase of wine from importers and its distribution and, subsequently, through an outsourcing arrangement with a third party. Mr Woodgate refers to the claims of two major secured creditors, whose claims may exceed the value of assets of the Wine Society, although that may depend on questions as to the value of its intellectual property and a shareholding in the third party. Mr Woodgate also refers to complexities as to the extent to which the Co-operatives (Adoption of National Law) Act 2012 (NSW) and, the Co-operatives National Law and the Co-operatives National Regulations apply provisions of the Corporations Act where a cooperative is placed into administration. These issues were, as I noted above, addressed in Re University Co-operative Bookshop Ltd (No 2) above. Mr Woodgate also refers to the urgency of the application, where a meeting of creditors of the cooperative is to take place tomorrow, 7 August 2020.