Clear Computer Corporation is not out of the woods yet. Two of its creditors commenced an action in the Supreme Court last week which could overturn the deed of company arrangement put in place only a month ago (see ARN May 6, page 1).
Clear could be forced into liquidation, and 25 jobs will be lost if the action is successful. The company has been trading as distributor Vantage Point Technology and system integrator, Clear Technology.
ComTech and Software Spectrum have "called for the video" to review the circumstances around the voluntary administration of Clear and the subsequent deed as recommended by administrator, Peter Ngan.
The creditors must believe the action can achieve a better financial return. As of May 1, the company had been returned to the control of directors Steve and Tania Stuart. It is understood some of the creditors were not satisfied with the deed, which will see them receiving five cents in the dollar for debts outstanding at the time of administrator's appointment.
The plaintiff's action is believed to relate to section 600A of the corporations law. ARN was told by an independent corporate law solicitor: "This section attempts to overcome the control of a creditors meeting by those who have a relationship with the company in administration. The court may make a broad range of orders including liquidating the company."
Independent legal sources explained that 600A may be summarised as providing disaffected creditors with a right to apply to the court for a review of a resolution put to a creditor's meeting where the outcome has been effectively determined by the vote of related creditors, and the resolution is thought to be:
1 Contrary to the interest of the creditors as a whole or of a class of creditors as a whole 2 Prejudiced or is likely to prejudice the interests of the creditors who voted for or against the proposed resolution to the extent that it is unreasonable in that it may benefit the related creditors, or by the nature of the relationship between the related creditors and the company.
Clear managing director Steve Stuart said: "I don't understand why they're (ComTech and Software Spectrum) taking this action. The administrator looked into all aspects of the business and took legal advice before recommending that the deed of company arrangement was the best outcome for all creditors."
The hearing date has been set for July 20.