Hughes, in the matter of Croesus Mining NL (ACN 009 150 083) (Subject to Deed of Company Arrangement) [2007] FCA 498

Hughes, in the matter of Croesus Mining NL (ACN 009 150 083) (Subject to Deed of Company Arrangement) [2007] FCA 498

The Court made the variation orders because s 447A permitted variation of the deeds of company arrangement, the secured creditors and relevant creditor committee members had agreed or consented as described, creditor meetings could not practicably be convened before the deadline and would be costly, the requested extension was limited to 14 days, there was unlikely to be prejudice to unsecured creditors, and the extension could benefit creditors by allowing ongoing discussions about possible dividends and better-informed voting on the administrators' proposal.

Jurisdiction
Australia
Judgment Date
01 February 2007
Procedural Posture
Application Under S 447 a of the Corporations Act 2001 (cth) to Vary Deeds of Company Arrangement / Final Orders and Reasons for Judgment on the Application
Outcome
Application granted, with a costs qualification for photocopying costs of annexures to the Share Sale Agreement.
Legal Topics
['deed of Company Arrangement' 'variation of Deed of Company Arrangement' 'extension of Time for Deed Administrators to Issue Report' 'voluntary Administration']
['corporations'] ['deed of Company Arrangement' 'variation of Deed of Company Arrangement' 'extension of Time for Deed Administrators to Issue Report' 'voluntary Administration']

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Procedural Posture

Application Under S 447 a of the Corporations Act 2001 (cth) to Vary Deeds of Company Arrangement / Final Orders and Reasons for Judgment on the Application

Legal Issues

  1. 1 ['Whether s 447A of the Corporations Act 2001 (Cth) could be used to vary the terms of the deeds of company arrangement.' 'Whether the deeds of company arrangement should be varied to extend the time for the deed administrators to issue reports to creditors to not later than 20 February 2007.']

Ratio Decidendi

The Court made the variation orders because s 447A permitted variation of the deeds of company arrangement, the secured creditors and relevant creditor committee members had agreed or consented as described, creditor meetings could not practicably be convened before the deadline and would be costly, the requested extension was limited to 14 days, there was unlikely to be prejudice to unsecured creditors, and the extension could benefit creditors by allowing ongoing discussions about possible dividends and better-informed voting on the administrators' proposal.

Court Disposition

Application granted, with a costs qualification for photocopying costs of annexures to the Share Sale Agreement.

Orders

  • ['Clause 4.1.3 of the deed of company arrangement dated 15 September 2006 between Bryan Kevin Hughes, Vincent Anthony Smith and Central Norseman Gold Corporation Limited (ACN 005 482 860) (subject to deed of company arrangement) be varied by deleting the words "for a period of up to 60 days", and replacing those...