Park (Deed Administrator), in the matter of Ellume Limited (Subject to Deed of Company Arrangement) (No 2) [2023] FCA 593

Park (Deed Administrator), in the matter of Ellume Limited (Subject to Deed of Company Arrangement) (No 2) [2023] FCA 593

The Court was satisfied that the deed administrators' opinion that effectuation of the DOCA was in creditors' best interests was justified. Because giving the ordinary 10 business days' notice would make the proposed meeting futile as the DOCA would automatically terminate, it was appropriate to abridge time for service of the notice and permit the proposed modes of notification.

Jurisdiction
Australia
Judgment Date
06 June 2023
Procedural Posture
Urgent Application by Deed Administrators for Abridgment of Time to Give Notice of a Meeting of Creditors to Decide Whether to Amend a Deed of Company Arrangement / Application Heard and Orders Made on 6 June 2023
Outcome
Application granted.
Legal Topics
['deed of Company Arrangement' "abridgment of Time for Notice of Creditors' Meeting" 'meeting of Creditors' 'variation of Deed of Company Arrangement']
['bankruptcy and Insolvency' 'corporations and Corporate Insolvency'] ['deed of Company Arrangement' "abridgment of Time for Notice of Creditors' Meeting" 'meeting of Creditors' 'variation of Deed of Company Arrangement']

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Procedural Posture

Urgent Application by Deed Administrators for Abridgment of Time to Give Notice of a Meeting of Creditors to Decide Whether to Amend a Deed of Company Arrangement / Application Heard and Orders Made on 6 June 2023

Legal Issues

  1. 1 ['Whether time should be abridged for giving notice of a meeting of creditors to be convened on 9 June 2023 to consider amendments to the DOCA.' "Whether notice of the meeting should be permitted by email, express post and publication on the applicants' website." 'Whether the costs of the application should be costs and expenses in the deed administration.']

Ratio Decidendi

The Court was satisfied that the deed administrators' opinion that effectuation of the DOCA was in creditors' best interests was justified. Because giving the ordinary 10 business days' notice would make the proposed meeting futile as the DOCA would automatically terminate, it was appropriate to abridge time for service of the notice and permit the proposed modes of notification.

Court Disposition

Application granted.

Orders

  • ['Pursuant to s 1322(4)(d) or alternatively s 447A of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations), a meeting of creditors of the second applicant be convened on 9 June 2023, the time for giving notice required under r 75-20 of the Insolvency Practice Rules...