In the matter of University Co-operative Bookshop Limited (admins apptd) [2019] NSWSC 1898

In the matter of University Co-operative Bookshop Limited (admins apptd) [2019] NSWSC 1898

The Court was satisfied that the extension of the convening period was justified because the Co-op entities operated a relatively complex nationwide business, further time was necessary to investigate and pursue a sale as a going concern or in parts, the extension was likely to preserve value for creditors and employment opportunities, the committees of inspection supported the application, the secured creditor did not object, lessors had been notified and had not objected, and the proposed period was sufficient and necessary in the circumstances.

Jurisdiction
Australia
Judgment Date
17 December 2019
Procedural Posture
Corporations External Administration Application / Originating Process Seeking Orders Concerning the Application of the Insolvency Practice Schedule (corporations) and Insolvency Practice Rules (corporations) 2016 (cth), and an Extension of the Convening Period for the Second Meeting of Creditors
Outcome
Orders made extending time for convening second meeting of creditors.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'application of Insolvency Practice Schedule and Insolvency Practice Rules to Co Operatives' 'electronic Communications With Creditors']
['corporations Law' 'insolvency and External Administration' 'co Operatives'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'application of Insolvency Practice Schedule and Insolvency Practice Rules to Co Operatives' 'electronic Communications With Creditors']

Case Brief

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Procedural Posture

Corporations External Administration Application / Originating Process Seeking Orders Concerning the Application of the Insolvency Practice Schedule (corporations) and Insolvency Practice Rules (corporations) 2016 (cth), and an Extension of the Convening Period for the Second Meeting of Creditors

Legal Issues

  1. 1 ['Whether the Insolvency Practice Schedule (Corporations) and Insolvency Practice Rules (Corporations) 2016 (Cth) apply to the administration of the Co-op entities to the extent they correspond to former provisions of the Corporations Act 2001 (Cth) or Corporations Regulations 2001 (Cth).' 'Whether any gap in the application of the Insolvency Practice Schedule (Corporations) or Insolvency Practice Rules (Corporations) 2016 (Cth) could be addressed by orders under s 447A of the Corporations Act 2001 (Cth).' 'Whether the convening period for the second meeting of creditors should be extended under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether communications with creditors should be permitted by electronic means.']

Ratio Decidendi

The Court was satisfied that the extension of the convening period was justified because the Co-op entities operated a relatively complex nationwide business, further time was necessary to investigate and pursue a sale as a going concern or in parts, the extension was likely to preserve value for creditors and employment opportunities, the committees of inspection supported the application, the secured creditor did not object, lessors had been notified and had not objected, and the proposed period was sufficient and necessary in the circumstances.

Court Disposition

Orders made extending time for convening second meeting of creditors.

Orders

  • ['Orders made in accordance with paragraphs 3-10 of the short minutes of order initialled by the Court and placed in the file.' 'The convening period for the second meeting of creditors was extended.' 'Orders were made to permit communications with creditors by electronic means.' "Liberty was reserved to the...