Georges, In the Matter of Midas Australia Pty Ltd (Administrators Appointed) [2009] FCA 38

Georges, In the Matter of Midas Australia Pty Ltd (Administrators Appointed) [2009] FCA 38

The administrators had legitimate reasons for an extension, including the need to complete investigations, assess the potential sale of the business, allow for any deed of company arrangement proposal and prepare an adequate report to creditors. In the circumstances, including the holiday season and the ability under the s 447A(1) order to hold the meeting earlier if appropriate, the balance favoured extending the convening period.

Jurisdiction
Australia
Judgment Date
29 January 2009
Procedural Posture
Corporations Administration Application / Application Under S 439 A(6) of the Corporations Act 2001 (cth) to Extend the Convening Period for the Second Creditors Meeting and Under S 447 A(1) Concerning the Time for Holding That Meeting
Outcome
Extension granted; orders sought made.
Legal Topics
['extension of Convening Period' 'second Creditors Meeting' 'deed of Company Arrangement' 'sale of Business as a Going Concern' "administrators' Report to Creditors"]
['corporations' 'insolvency' 'voluntary Administration'] ['extension of Convening Period' 'second Creditors Meeting' 'deed of Company Arrangement' 'sale of Business as a Going Concern' "administrators' Report to Creditors"]

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Procedural Posture

Corporations Administration Application / Application Under S 439 A(6) of the Corporations Act 2001 (cth) to Extend the Convening Period for the Second Creditors Meeting and Under S 447 A(1) Concerning the Time for Holding That Meeting

Legal Issues

  1. 1 ['Whether the convening period for the second creditors meeting of Midas Australia Pty Ltd and PBH Asset Management Pty Ltd should be extended under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether an order should be made under s 447A(1) of the Corporations Act 2001 (Cth) so that Part 5.3A operates as if the second creditors meeting may be held during the extended convening period and five business days thereafter.']

Ratio Decidendi

The administrators had legitimate reasons for an extension, including the need to complete investigations, assess the potential sale of the business, allow for any deed of company arrangement proposal and prepare an adequate report to creditors. In the circumstances, including the holiday season and the ability under the s 447A(1) order to hold the meeting earlier if appropriate, the balance favoured extending the convening period.

Court Disposition

Extension granted; orders sought made.

Orders

  • ['Pursuant to s 439A(6) of the Corporations Act 2001 (Cth), the convening period defined in s 439A(5)(a) of the Act in respect of Midas Australia Pty Ltd (Administrators Appointed) ACN 005 241 798 and PBH Asset Management Pty Ltd (Administrators Appointed) ACN 099 913 685 be extended until midnight on 3 April 2009.'...