Holzman (Administrator), in the matter of Aus Confec Pty Ltd (Administrators Appointed) [2020] FCA 181

Holzman (Administrator), in the matter of Aus Confec Pty Ltd (Administrators Appointed) [2020] FCA 181

On Mr Holzman's evidence, extending the adjournment of the second meeting to 24 April 2020 was in the interests of creditors generally because it would allow the administrators to pursue a going concern sale and anticipated DOCA that were likely to improve returns compared with immediate liquidation. The Court had power under s 447A(1) to make orders about how Pt 5.3A operates so as to modify the effect of the adjournment limit in r 75-140(3).

Jurisdiction
Australia
Judgment Date
12 February 2020
Procedural Posture
Corporations External Administration Application Under S 447 A(1) of the Corporations Act 2001 (cth) / Application for Orders Extending the Period of Adjournment of the Second Meeting of Creditors; Orders Made
Outcome
Application granted; orders extending the adjournment period and modifying notice requirements made.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' 'extension of Adjournment Period' 'deed of Company Arrangement' 'going Concern Sale' 'notice to Creditors']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'second Meeting of Creditors' 'extension of Adjournment Period' 'deed of Company Arrangement' 'going Concern Sale' 'notice to Creditors']

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Procedural Posture

Corporations External Administration Application Under S 447 A(1) of the Corporations Act 2001 (cth) / Application for Orders Extending the Period of Adjournment of the Second Meeting of Creditors; Orders Made

Legal Issues

  1. 1 ['Whether Pt 5.3A of the Corporations Act 2001 (Cth) should operate to permit the second meeting of creditors to be adjourned beyond the period prescribed by r 75-140(3) of the Insolvency Practice Rules (Corporations) 2016 (Cth).' 'Whether extending the adjournment to 24 April 2020 would be in the interests of creditors generally.' 'Whether the Court has power under s 447A(1) of the Corporations Act 2001 (Cth) to make orders affecting the operation of a time limit prescribed by the Insolvency Practice Rules (Corporations) 2016 (Cth).']

Ratio Decidendi

On Mr Holzman's evidence, extending the adjournment of the second meeting to 24 April 2020 was in the interests of creditors generally because it would allow the administrators to pursue a going concern sale and anticipated DOCA that were likely to improve returns compared with immediate liquidation. The Court had power under s 447A(1) to make orders about how Pt 5.3A operates so as to modify the effect of the adjournment limit in r 75-140(3).

Court Disposition

Application granted; orders extending the adjournment period and modifying notice requirements made.

Orders

  • ['Pursuant to s 447A(1) of the Corporations Act 2001 (Cth), Pt 5.3A of the Act is to operate in relation to the administration of Aus Confec Pty Ltd (Administrators Appointed) ACN 624 426 044 as if r 75-140(3) of the Insolvency Practice Rules (Corporations) 2016 (Cth) permitted adjournment of the meeting convened...