Supreme Court orders liquidation of Etmat Bay Estate Ltd

July 21, 2025 10:18 pm | Posted in Business News | Share now TwitterFacebook

By Terence Malapa.

In a decision delivered by Justice Maree MacKenzie in the Supreme Court of Vanuatu, the company Etmat Bay Estate Limited has been placed into liquidation following an uncontested application by Enterprise Dinh Van Tu Limited.

The application was made under the Companies (Insolvency and Receivership) Act No. 3 of 2013, triggered by an unpaid debt of VT187,787,244.

The proceedings arose after the Defendant failed to comply with a statutory demand served on 8 April 2025. The demand, which included interest at 8.5 percent, related to unpaid invoices for work performed by the Claimant between 2015 and 2022 at the Etmat Bay development project. Despite repeated attempts to resolve the matter, the Defendant did not make payment nor challenge the demand in court.

Upon application by the Claimant, the Court found that the statutory demand satisfied the requirements under section 19 of the Act, and that the Defendant company was presumed unable to pay its debts under section 17. No defence was filed within the prescribed timeframe under the Regulation Order, and although the Defendant was granted special leave to appear through counsel, it was acknowledged that no defence existed.

Mr. John Malcolm, appearing for the Defendant, acknowledged the debt and raised no objection to the liquidation, but requested an adjournment to allow for negotiation, citing possible issues related to customary land ownership. This request was opposed by Mr. Mark Fleming for the Claimant, who noted the debt had remained unpaid since 2018 and supported the appointment of Mr. Steve Adams as liquidator, citing his qualifications to handle any complexities.

Justice MacKenzie refused the adjournment, citing the length of the outstanding debt and absence of a substantive defence. The Court held that all conditions under sections 15 and 21 of the Act had been met and ordered the immediate liquidation of the Defendant company.

The Court appointed Mr. Adams as liquidator and directed that the Claimant’s legal costs of VT3,462,362 be paid as a priority under the Companies Act. Leave was also granted for the liquidator to seek further directions from the Court as required.

This ruling concludes a commercial dispute arising from infrastructure works carried out over seven years ago and affirms the Court’s authority to enforce statutory demands where no valid defence is presented. The liquidation will now proceed under the supervision of the appointed liquidator.