In the matter of Oventus Medical Limited (Administrators Appointed) [2022] FCA 840

In the matter of Oventus Medical Limited (Administrators Appointed) [2022] FCA 840

The Court granted the extension as it was satisfied, based on professional evidence and absence of prejudice, that allowing time for recapitalisation or sale as a going concern was in the best interests of creditors, with prospects that all creditors would be repaid and value would be preserved for shareholders, and that the extension sought did not give rise to material prejudice to stakeholders.

Parties
First Applicant: Michael Gerard McCann and Graham Robert Killer (in their capacity as joint and several administrators of Oventus Medical Limited (Administrators Appointed) ACN 608 393 282); Second Applicant: Oventus Medical Limited (Administrators Appointed) ACN 608 393 282; Third Applicant: Oventus CRM Pty Ltd (Administrators Appointed) ACN 608 397 726; Fourth Applicant: Oventus Manufacturing Pty Ltd (Administrators Appointed) ACN 163 851 287
Jurisdiction
Australia
Judgment Date
08 July 2022
Procedural Posture
Corporations – Administration Application / Extension of Convening Period – Judgment
Outcome
Application granted – convening period extended until 12 January 2023; ancillary orders made
Legal Topics
Extension of Convening Period, Voluntary Administration, Recapitalisation, Creditors' Meetings
Corporations Law Insolvency Extension of Convening Period Voluntary Administration Recapitalisation Creditors' Meetings

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Parties

Michael Gerard McCann and Graham Robert Killer (in their capacity as joint and several administrators of Oventus Medical Limited (Administrators Appointed) ACN 608 393 282)

First Applicant

Oventus Medical Limited (Administrators Appointed) ACN 608 393 282

Second Applicant

Oventus CRM Pty Ltd (Administrators Appointed) ACN 608 397 726

Third Applicant

Oventus Manufacturing Pty Ltd (Administrators Appointed) ACN 163 851 287

Fourth Applicant

Procedural Posture

Corporations – Administration Application / Extension of Convening Period – Judgment

Legal Issues

  1. 1 Whether to exercise the Court's power under s 439A(6) of the Corporations Act 2001 (Cth) to extend the convening period for a second creditors' meeting
  2. 2 Whether extension of the convening period is in the interests of creditors and shareholders in circumstances of potential recapitalisation

Ratio Decidendi

The Court granted the extension as it was satisfied, based on professional evidence and absence of prejudice, that allowing time for recapitalisation or sale as a going concern was in the best interests of creditors, with prospects that all creditors would be repaid and value would be preserved for shareholders, and that the extension sought did not give rise to material prejudice to stakeholders.

Court Disposition

Application granted – convening period extended until 12 January 2023; ancillary orders made

Orders

  • The convening period for creditors' meetings in respect of the Second to Fourth Applicants is extended to 12 January 2023.
  • Meetings of creditors required by s 439A(1) of the Corporations Act 2001 (Cth) may be held at any time during or within five business days after the end of the extended convening period.