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Abuse: Scheme of arrangement or compromise.

By Bill Madden on July 3, 2026

In the matter of Trustees of the Christian Brothers [2026] NSWSC 781 (Link to Caselaw).

At a hearing on 2 July 2026, the Plaintiffs sought a Moratorium Order. Specifically, the Plaintiffs sought an order, pursuant to s 411(16) of the Act, that all further proceedings in any action or civil proceeding (whether or not such proceedings have been commenced, and including enforcement of any judgment) against one or more of the Plaintiffs be restrained until the earlier of the date on which the proposed Schemes become effective pursuant to s 411(10) of the Act or further order of the Court, except by leave of the Court, and subject to a number of express “carve outs”.

The court made the Moratorium Order sought by the Plaintiffs as set out at [143].

The court noted at [142]:

The Moratorium Order will maintain the status quo and will permit the orderly and efficient progress of the application in respect of the proposed Schemes which, if approved and implemented, may result in a better outcome for all creditors, including sexual abuse claimants, than would be obtained in a liquidation of the Plaintiffs.

[BillMaddensWordpress #2549]

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