Warwick, in the matter of BWX Ltd (Receivers and Managers Appointed) (Administrators Appointed) (No 2) [2023] FCA 1395

Warwick, in the matter of BWX Ltd (Receivers and Managers Appointed) (Administrators Appointed) (No 2) [2023] FCA 1395

The further extension of the convening period to 13 May 2024 was granted because the sale process for the Companies' businesses is ongoing and is likely to maximise returns for creditors; there is little evidence of prejudice to other stakeholders; and the extension supports the efficient and fair administration of the Companies. Ancillary and confidentiality orders were granted to protect justice administration and commercially sensitive information.

Parties
First Plaintiff: Kate Warwick, Kelly Trenfield and Joseph Hansell as joint and several administrators of each of the second to fourteenth plaintiffs; Second Plaintiff: BWX Limited ACN 163 488 631 (Receivers & Managers Appointed) (Administrators Appointed); Third Plaintiff: Beautiworx Pty Ltd ACN 163 847 916 (Receivers & Managers Appointed) (Administrators Appointed); Fourth Plaintiff: LHS No. 2 Pty Ltd ACN 165 455 201 (Administrators Appointed); Fifth Plaintiff: Sapu Corporation Pty Ltd (formerly USPA Corporation Pty Ltd) ACN 163 273 514 (Administrators Appointed); Sixth Plaintiff: Edward Beale Hair Care Pty Ltd ACN 167 891 161 (Receivers & Managers Appointed) (Administrators Appointed); Seventh Plaintiff: BWX Brands Pty Ltd ACN 602 062 117 (Receivers & Managers Appointed) (Administrators Appointed); Eighth Plaintiff: BWX Australia Pty Ltd ACN 601 966 170 (Receivers & Managers Appointed) (Administrators Appointed); Ninth Plaintiff: Sukin Australia Pty Ltd ACN 602 062 199 (Receivers & Managers Appointed) (Administrators Appointed); Tenth Plaintiff: Renew Skin Care Australia Pty Ltd ACN 606 139 315 (Receivers & Managers Appointed) (Administrators Appointed); Eleventh Plaintiff: Derma Sukin Australia Pty Ltd ACN 606 140 818 (Receivers & Managers Appointed) (Administrators Appointed); Twelfth Plaintiff: Lightning Distribution Pty Ltd ACN 610 861 455 (Receivers & Managers Appointed) (Administrators Appointed); Thirteenth Plaintiff: BWX Digital Pty Ltd ACN 621 403 370 (Receivers & Managers Appointed) (Administrators Appointed); Fourteenth Plaintiff: The Good Collective Pty Ltd ACN 169 556 398 (Receivers & Managers Appointed) (Administrators Appointed)
Jurisdiction
Australia
Judgment Date
26 October 2023
Procedural Posture
Corporations – Application for Extension of Convening Period for Second Meeting of Creditors / Interlocutory Application – Second Extension
Outcome
Orders granted
Legal Topics
Extension of Convening Period, Second Meeting of Creditors, Administrators Powers, Receivership, Confidentiality Orders
Corporations Law Insolvency Extension of Convening Period Second Meeting of Creditors Administrators Powers Receivership Confidentiality Orders

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Parties

Kate Warwick, Kelly Trenfield and Joseph Hansell as joint and several administrators of each of the second to fourteenth plaintiffs

First Plaintiff

BWX Limited ACN 163 488 631 (Receivers & Managers Appointed) (Administrators Appointed)

Second Plaintiff

Beautiworx Pty Ltd ACN 163 847 916 (Receivers & Managers Appointed) (Administrators Appointed)

Third Plaintiff

LHS No. 2 Pty Ltd ACN 165 455 201 (Administrators Appointed)

Fourth Plaintiff

Sapu Corporation Pty Ltd (formerly USPA Corporation Pty Ltd) ACN 163 273 514 (Administrators Appointed)

Fifth Plaintiff

Edward Beale Hair Care Pty Ltd ACN 167 891 161 (Receivers & Managers Appointed) (Administrators Appointed)

Sixth Plaintiff

BWX Brands Pty Ltd ACN 602 062 117 (Receivers & Managers Appointed) (Administrators Appointed)

Seventh Plaintiff

BWX Australia Pty Ltd ACN 601 966 170 (Receivers & Managers Appointed) (Administrators Appointed)

Eighth Plaintiff

Sukin Australia Pty Ltd ACN 602 062 199 (Receivers & Managers Appointed) (Administrators Appointed)

Ninth Plaintiff

Renew Skin Care Australia Pty Ltd ACN 606 139 315 (Receivers & Managers Appointed) (Administrators Appointed)

Tenth Plaintiff

Derma Sukin Australia Pty Ltd ACN 606 140 818 (Receivers & Managers Appointed) (Administrators Appointed)

Eleventh Plaintiff

Lightning Distribution Pty Ltd ACN 610 861 455 (Receivers & Managers Appointed) (Administrators Appointed)

Twelfth Plaintiff

BWX Digital Pty Ltd ACN 621 403 370 (Receivers & Managers Appointed) (Administrators Appointed)

Thirteenth Plaintiff

The Good Collective Pty Ltd ACN 169 556 398 (Receivers & Managers Appointed) (Administrators Appointed)

Fourteenth Plaintiff

Procedural Posture

Corporations – Application for Extension of Convening Period for Second Meeting of Creditors / Interlocutory Application – Second Extension

Legal Issues

  1. 1 Whether it is appropriate to grant a further extension of the convening period for the second meeting of creditors under s 447A of the Corporations Act 2001 (Cth)
  2. 2 Whether confidentiality orders should be made under ss 37AF and 37AG(1)(a) of the Federal Court of Australia Act 1976 (Cth)

Ratio Decidendi

The further extension of the convening period to 13 May 2024 was granted because the sale process for the Companies' businesses is ongoing and is likely to maximise returns for creditors; there is little evidence of prejudice to other stakeholders; and the extension supports the efficient and fair administration of the Companies. Ancillary and confidentiality orders were granted to protect justice administration and commercially sensitive information.

Court Disposition

Orders granted

Orders

  • Extension of the convening period to 11.59 pm on 13 May 2024 for the Administrators to convene the second meeting of creditors under s 439A of the Corporations Act 2001 (Cth)
  • Second meetings of creditors may be held together or separately during or within five business days after the extended convening period