Sims, in the matter of Huon Corporation Pty Ltd (Administrators appointed) [2006] FCA 958

Sims, in the matter of Huon Corporation Pty Ltd (Administrators appointed) [2006] FCA 958

The administrators were proper plaintiffs for both applications. The evidence showed a large and complex administration requiring further time to pursue a going concern sale, negotiations, industrial issues, litigation and completion of the administrators' report, and showed support from the committee of creditors and the secured creditor. It was therefore appropriate to extend the convening period by 90 days and to make s 447A orders allowing Pt 5.3A to operate so that the committee of creditors could fix the administrators' remuneration and the second meeting could be held during the extended period or within five business days thereafter.

Jurisdiction
Australia
Judgment Date
20 July 2006
Procedural Posture
Corporations Voluntary Administration Application / Application for Extension of Time for Convening and Holding the Second Meeting of Creditors and for an Order Permitting the Committee of Creditors to Fix Administrators' Remuneration
Outcome
Applications granted; orders made.
Legal Topics
['extension of Convening Period' 'second Meeting of Creditors' 'administrator Remuneration' 'committee of Creditors' 'section 447 a Orders']
['corporations' 'insolvency' 'voluntary Administration'] ['extension of Convening Period' 'second Meeting of Creditors' 'administrator Remuneration' 'committee of Creditors' 'section 447 a Orders']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 1 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations Voluntary Administration Application / Application for Extension of Time for Convening and Holding the Second Meeting of Creditors and for an Order Permitting the Committee of Creditors to Fix Administrators' Remuneration

Legal Issues

  1. 1 ['Whether the administrators were proper plaintiffs for an application under s 439A(6) to extend the convening period for the second meeting of creditors.' 'Whether the administrators were proper plaintiffs for an application under s 447A to permit the committee of creditors to determine their remuneration.' 'Whether the evidence justified extending the convening period by 90 days.' "Whether Pt 5.3A should operate to permit the committee of creditors to fix the administrators' remuneration."]

Ratio Decidendi

The administrators were proper plaintiffs for both applications. The evidence showed a large and complex administration requiring further time to pursue a going concern sale, negotiations, industrial issues, litigation and completion of the administrators' report, and showed support from the committee of creditors and the secured creditor. It was therefore appropriate to extend the convening period by 90 days and to make s 447A orders allowing Pt 5.3A to operate so that the committee of creditors could fix the administrators' remuneration and the second meeting could be held during the extended period or within five business days thereafter.

Court Disposition

Applications granted; orders made.

Orders

  • ['The plaintiffs have leave to file the originating process dated 19 July 2006 and the affidavit of Scott Darren Pascoe sworn 19 July 2006.' 'The originating process is returnable instanter.' 'Pursuant to s 439A(6) of the Corporations Act 2001 (Cth), the convening period defined in s 439A(5)(b) in respect of Huon...