In Aditude Advertising Limited (in liq.) v Techday Limited [2012] NZHC 1884, Aditude Advertising Limited (in liquidation) (Aditude) and Techday Limited (Techday), were members of the Bartercard system, a credit trading system.  Under this system members could exchange goods and services without exchanging cash or other legal tender.  Aditude went into liquidation with a significant credit in its Bartercard account for services rendered to Techday.  The liquidators issued a statutory demand against Techday seeking to recover the actual cash value of the invoices issued to Techday to help meet Aditude's provable claims.  The Court found the terms of the Bartercard system established it as a no-cash system and that as the invoices had been issued under this system, the credit balance in Aditude's Bartercard account was not a "debt due" to Aditude.  As a result, the liquidators were unable to recover the company's trading credit in cash from Techday.

This case provides guidance to liquidators seeking to recover the value of a liquidated company's Bartercard credit.  Such credit will not be recoverable in cash as it is not a "debt due".  However, the Court did note that liquidators could still have used the Bartercard credit to procure goods and services under the scheme.

See court decision here.