No public interest in matter.
Woolworths has won the legal battle against Lowe’s attempt to appoint a liquidator to the wind-up of Masters. On Tuesday, Justice Lindsay Foster ordered both parties to enter into arbitration and Lowe’s to pay Woolworths’ legal costs, putting Lowe’s application for a court-ordered exit on hold.
“The substantive controversy between the parties are matters which are capable of resolution by arbitration. In truth, there is no substantial public interest element in the determination of these parties’ disputes,” Justice Foster reportedly said.
“At the present time, it is not suggested that Hydrox is insolvent. Indeed, there is evidence to the effect that Woolworths has provided letters of comfort to the directors in order to allay any concerns that that may have,” he said.
The original joint venture agreement included an arbitration agreement that obliged both parties to resolve their differences in the Australian Centre for International Commercial Arbitration.
High Court chief justice Murray Gleeson will oversee the arbitration.
The clearance of $700 million of Masters’ stock through the Greater American Group for a guaranteed return of $500 million is underway. GA Australia, the local arm of Greater American, has stepped up discounts to 50% as the fire sale gathers pace.
Masters is losing $5 million a week and Woolworths may have to use the proceeds from the Masters fire sale and the Home Timber & Hardware deal to keep the joint venture solvent until the end of the year.