Dickerson (Administrator), in the matter of McWilliam's Wines Group Ltd (Administrators Appointed) [2020] FCA 57

Dickerson (Administrator), in the matter of McWilliam's Wines Group Ltd (Administrators Appointed) [2020] FCA 57

The Court extended the convening periods because the administrations were complex, the administrators' investigations were incomplete, a sale campaign for the Group's business required several months and might involve an extended settlement period, the administrators could not yet give creditors meaningful recommendations, and there was no evidence of material prejudice or creditor opposition. These matters justified a lengthy extension to maximise the potential return to creditors.

Jurisdiction
Australia
Judgment Date
04 February 2020
Procedural Posture
Application by Administrators for Extension of Convening Period for Second Meeting of Creditors Under Corporations Act 2001 (cth) S 439 a / Originating Process Returnable Instanter; Application Heard and Determined on 4 February 2020
Outcome
Application granted; convening periods extended and ancillary orders made.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'going Concern Sale' 'deed of Company Arrangement' 'notice to Creditors']
['corporations' 'corporate Insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'going Concern Sale' 'deed of Company Arrangement' 'notice to Creditors']

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Procedural Posture

Application by Administrators for Extension of Convening Period for Second Meeting of Creditors Under Corporations Act 2001 (cth) S 439 a / Originating Process Returnable Instanter; Application Heard and Determined on 4 February 2020

Legal Issues

  1. 1 ['Whether the convening period for the second meeting of creditors of each company should be extended to 31 July 2020 under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether Pt 5.3A of the Corporations Act 2001 (Cth) should operate to permit the second meetings to be convened before, or within five business days after, the extended convening period and to permit specified methods of giving notice.' 'Whether the proposed extension would benefit creditors and avoid prejudice in circumstances of incomplete investigations, complex administrations and a proposed going concern sale campaign.']

Ratio Decidendi

The Court extended the convening periods because the administrations were complex, the administrators' investigations were incomplete, a sale campaign for the Group's business required several months and might involve an extended settlement period, the administrators could not yet give creditors meaningful recommendations, and there was no evidence of material prejudice or creditor opposition. These matters justified a lengthy extension to maximise the potential return to creditors.

Court Disposition

Application granted; convening periods extended and ancillary orders made.

Orders

  • ['The Originating Process dated 3 February 2020 be returnable instanter.' "Pursuant to s 439A(6) of the Corporations Act 2001 (Cth), the convening period for the second meeting of creditors of McWilliam's Wines Group Ltd (Administrators Appointed) ACN 000 024 108 and Mount Pleasant Wines Pty Ltd (Administrators...