Sims, in the matter of Destra Corporation Limited [2008] FCA 2002

Sims, in the matter of Destra Corporation Limited [2008] FCA 2002

Given the complex circumstances, lack of complete financial records, ongoing asset realisations by Receivers, and the need to properly inform creditors, it is reasonable and in creditors’ interests to extend the convening period under s 439A(6) and direct that notice and reports may be given by electronic means and CD-ROM under s 447A(1).

Parties
First Plaintiffs: Anthony Milton Sims, Andrew Leslie Smith, Grant Dede Sparks (Administrators); Second Plaintiffs: Destra Corporation Limited and the companies listed in Schedule 'A'
Jurisdiction
Australia
Judgment Date
03 December 2008
Procedural Posture
Corporations/external Administration / Interlocutory Application for Extension of Convening Period and Directions for Creditors' Meeting
Outcome
Orders granted: convening period extended, alternative notice procedures approved, liberty to apply granted, costs out of assets, some matters reserved, hearing adjourned.
Legal Topics
Extension of Convening Period, Administrators’ Obligations, Creditors’ Meetings, Notice to Creditors, Receivership
Corporate Insolvency Corporate Law Extension of Convening Period Administrators’ Obligations Creditors’ Meetings Notice to Creditors Receivership

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Parties

Anthony Milton Sims, Andrew Leslie Smith, Grant Dede Sparks (Administrators)

First Plaintiffs

Destra Corporation Limited and the companies listed in Schedule 'A'

Second Plaintiffs

Procedural Posture

Corporations/external Administration / Interlocutory Application for Extension of Convening Period and Directions for Creditors' Meeting

Legal Issues

  1. 1 Whether the convening period for the second creditors' meeting should be extended under s 439A(6)
  2. 2 Whether directions as to the manner of notification to creditors should be made under s 447A(1)

Ratio Decidendi

Given the complex circumstances, lack of complete financial records, ongoing asset realisations by Receivers, and the need to properly inform creditors, it is reasonable and in creditors’ interests to extend the convening period under s 439A(6) and direct that notice and reports may be given by electronic means and CD-ROM under s 447A(1).

Court Disposition

Orders granted: convening period extended, alternative notice procedures approved, liberty to apply granted, costs out of assets, some matters reserved, hearing adjourned.

Orders

  • Extension of the period for convening the second creditors’ meeting up to and including 12 February 2009 under s 439A(6)
  • Second creditors’ meeting may be held within five business days after the extended convening period under s 447A(1)