Jahani, in the matter of Miniso Master Franchisee Pty Ltd (Administrators Appointed) [2020] FCA 1066

Jahani, in the matter of Miniso Master Franchisee Pty Ltd (Administrators Appointed) [2020] FCA 1066

The Court granted the extension because, in the circumstances of the COVID-19 pandemic, unpaid rent since 31 March 2020, the likely difficulty for landlords in finding short-term replacement retail tenants, and the complex corporate and retail arrangements, a roughly 20-day extension was reasonable and in the best interests of creditors as a whole by allowing the administrators time to assess and pursue restructuring, sale, recapitalisation, deed of company arrangement, and negotiations with landlords and franchisees.

Jurisdiction
Australia
Judgment Date
17 July 2020
Procedural Posture
Corporations Application in Relation to External Administration of a Company / Application for Extension of Time for Administrators' Personal Liability Determined
Outcome
Application allowed.
Legal Topics
['voluntary Administration' "administrators' Personal Liability" 'leased Property and Rent Obligations' 'covid 19 Pandemic' 'best Interests of Creditors as a Whole']
['corporations' 'corporate Insolvency' 'external Administration'] ['voluntary Administration' "administrators' Personal Liability" 'leased Property and Rent Obligations' 'covid 19 Pandemic' 'best Interests of Creditors as a Whole']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Corporations Application in Relation to External Administration of a Company / Application for Extension of Time for Administrators' Personal Liability Determined

Legal Issues

  1. 1 ["Whether Pt 5.3A of the Corporations Act 2001 (Cth) should operate so that the administrators' personal liability under ss 443A(1)(c) and 443B(2) begins on 15 August 2020 for rent or other amounts payable by the company." 'Whether the time referred to in s 443B(3) of the Corporations Act 2001 (Cth) should be read as "by 15 August 2020".' 'Whether the extension sought was in the best interests of creditors as a whole.']

Ratio Decidendi

The Court granted the extension because, in the circumstances of the COVID-19 pandemic, unpaid rent since 31 March 2020, the likely difficulty for landlords in finding short-term replacement retail tenants, and the complex corporate and retail arrangements, a roughly 20-day extension was reasonable and in the best interests of creditors as a whole by allowing the administrators time to assess and pursue restructuring, sale, recapitalisation, deed of company arrangement, and negotiations with landlords and franchisees.

Court Disposition

Application allowed.

Orders

  • ["Pursuant to ss 443B(8) and 447A(1) of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations), Part 5.3A of the Act is to operate in relation to the Second Plaintiff as if the First Plaintiffs' personal liability under ss 443A(1)(c) and 443B(2) begins on 15 August 2020 for...