Dean-Willcocks, in the matter of Central Norseman Gold Corporation Limited (Administrator Appointed) [2012] FCA 1369

Dean-Willcocks, in the matter of Central Norseman Gold Corporation Limited (Administrator Appointed) [2012] FCA 1369

The Court extended the convening period because, on the information available, the extension was in the best interests of creditors: liquidation might produce no meaningful return for unsecured creditors, a potential deed of company arrangement was being actively considered, secured creditors continued to indemnify trading losses, the committee of creditors supported the application, and the requested period was not unreasonable given the remaining steps identified by the administrator.

Jurisdiction
Australia
Judgment Date
04 December 2012
Procedural Posture
Application Under S 447 a of the Corporations Act 2001 (cth) for an Extension of Time for the Holding of the Second Meeting of Creditors of a Company in Administration / Further Application; Orders Made on 4 December 2012
Outcome
Further application granted.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement']

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Procedural Posture

Application Under S 447 a of the Corporations Act 2001 (cth) for an Extension of Time for the Holding of the Second Meeting of Creditors of a Company in Administration / Further Application; Orders Made on 4 December 2012

Legal Issues

  1. 1 ['Whether the convening period referred to in s 439A of the Corporations Act 2001 (Cth) should be extended to 28 February 2013 under s 447A.' 'Whether the second meeting of creditors may be held up to, or within 5 business days after, 28 February 2013.' 'Whether the further extension is in the best interests of creditors.']

Ratio Decidendi

The Court extended the convening period because, on the information available, the extension was in the best interests of creditors: liquidation might produce no meaningful return for unsecured creditors, a potential deed of company arrangement was being actively considered, secured creditors continued to indemnify trading losses, the committee of creditors supported the application, and the requested period was not unreasonable given the remaining steps identified by the administrator.

Court Disposition

Further application granted.

Orders

  • ['Pursuant to s 447A of the Corporations Act 2001 (the Act), Part 5.3A of the Act is to have effect in relation to the Second Plaintiff, Central Norseman Gold Corporation Limited (Administrator Appointed) as if the convening period referred to in s 439A of the Act were the period ending on 28 February 2013.'...