Billingsley (Administrator), in the matter of B K Chemists Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1059

Billingsley (Administrator), in the matter of B K Chemists Pty Ltd (Administrators Appointed) (No 2) [2020] FCA 1059

The convening period was extended because administrators had exchanged contracts for the sale of businesses as going concerns and required additional time to complete sales, maximising value for creditors; secured creditors did not object; all trade creditors paid or in consignment; extension was in the interests of creditors; no delay by administrators; without extension, liquidation and loss of value likely.

Jurisdiction
Australia
Judgment Date
08 July 2020
Procedural Posture
Corporations Administration Application / Interlocutory Order Extending Convening Period
Outcome
Application granted; convening period extended; confidentiality and notification orders made.
Legal Topics
['extension of Convening Period' 'administration of Insolvent Companies']
['corporations Law' 'corporate Insolvency'] ['extension of Convening Period' 'administration of Insolvent Companies']

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Procedural Posture

Corporations Administration Application / Interlocutory Order Extending Convening Period

Legal Issues

  1. 1 ['Whether the convening period for second meetings of creditors should be further extended under s 447A of the Corporations Act 2001 (Cth)' 'Whether meetings of creditors may be held within 5 business days after the end of the convening period as extended']

Ratio Decidendi

The convening period was extended because administrators had exchanged contracts for the sale of businesses as going concerns and required additional time to complete sales, maximising value for creditors; secured creditors did not object; all trade creditors paid or in consignment; extension was in the interests of creditors; no delay by administrators; without extension, liquidation and loss of value likely.

Court Disposition

Application granted; convening period extended; confidentiality and notification orders made.

Orders

  • ['Extension of convening period for second meeting of creditors to 9 September 2020.' 'Second meeting may be held at any time during, or within 5 days after end of, convening period as extended.' 'Confidential affidavit and annexures not to be disclosed, order to operate until conclusion of administration.'...