Silvia, in the matter of Austcorp Group Limited (Administrators Appointed) [2009] FCA 636

Silvia, in the matter of Austcorp Group Limited (Administrators Appointed) [2009] FCA 636

The evidence showed that the Austcorp Group was large and complex, with numerous companies, properties, cross-collateralised securities and substantial secured debts; a DOCA or reconstruction proposal might emerge only after three to four months; further time would assist efforts to realise value and maximise creditor returns; relevant creditors did not oppose and creditor committees supported the extension; and the major chargeholder consented. In those circumstances it was in creditors' interests to extend the convening periods to 30 September 2009 and to make accompanying s 447A orders permitting the meetings to be held during, or within 5 business days after, the extended periods.

Jurisdiction
Australia
Judgment Date
12 June 2009
Procedural Posture
Application for Extension of Time to Convene Second Meetings of Creditors in Voluntary Administrations and for Orders Under S 447 A(1) of the Corporations Act 2001 (cth) / Reasons for Orders Made on 28 May 2009
Outcome
Application granted; orders extending the convening periods and making associated s 447A orders were made.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'part 5.3 a of the Corporations Act 2001 (cth)']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'part 5.3 a of the Corporations Act 2001 (cth)']

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Procedural Posture

Application for Extension of Time to Convene Second Meetings of Creditors in Voluntary Administrations and for Orders Under S 447 A(1) of the Corporations Act 2001 (cth) / Reasons for Orders Made on 28 May 2009

Legal Issues

  1. 1 ['Whether the convening period for meetings of creditors under s 439A of the Corporations Act 2001 (Cth) should be extended up to and including 30 September 2009.' "Whether orders should be made under s 447A(1) so that the creditors' meetings may be held at any time during, or within 5 business days after, the extended convening period."]

Ratio Decidendi

The evidence showed that the Austcorp Group was large and complex, with numerous companies, properties, cross-collateralised securities and substantial secured debts; a DOCA or reconstruction proposal might emerge only after three to four months; further time would assist efforts to realise value and maximise creditor returns; relevant creditors did not oppose and creditor committees supported the extension; and the major chargeholder consented. In those circumstances it was in creditors' interests to extend the convening periods to 30 September 2009 and to make accompanying s 447A orders permitting the meetings to be held during, or within 5 business days after, the extended periods.

Court Disposition

Application granted; orders extending the convening periods and making associated s 447A orders were made.

Orders

  • ['Pursuant to section 439A(6) of the Corporations Act 2001 (Cth), the period within which the administrators of Austcorp Group Limited must convene a meeting of creditors under section 439A was extended up to and including 30 September 2009.' 'Pursuant to section 439A(6), the period within which the administrators...