Australian Workers' Union v Billingham, in the matter of Arrium Limited (administrators appointed) [2016] FCA 384

Australian Workers' Union v Billingham, in the matter of Arrium Limited (administrators appointed) [2016] FCA 384

The Court was satisfied it had power under ss 447A and 449C(6) of the Corporations Act 2001 (Cth) to make the orders sought. Given the existing administrators' intended resignation, the substantial nature of the Arrium Group's operations, KordaMentha's capability to act, creditor support, lack of opposition and the need to avoid any gap in the administration, replacement administrators were appointed to take effect from the date and time the existing administrators resign.

Jurisdiction
Australia
Judgment Date
12 April 2016
Procedural Posture
Urgent Application in Voluntary Administrations for Appointment of New Administrators / Orders Made After Hearing on 12 April 2016
Outcome
Application granted; orders made for modified operation of s 449C(6) and appointment of replacement administrators upon resignation of the existing administrators.
Legal Topics
['voluntary Administration' 'appointment of New Administrators' 'resignation of Administrators' 'corporations Act 2001 (cth) Ss 447 a and 449 C(6)']
['bankruptcy and Insolvency' 'corporations Law'] ['voluntary Administration' 'appointment of New Administrators' 'resignation of Administrators' 'corporations Act 2001 (cth) Ss 447 a and 449 C(6)']

Case Brief

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Procedural Posture

Urgent Application in Voluntary Administrations for Appointment of New Administrators / Orders Made After Hearing on 12 April 2016

Legal Issues

  1. 1 ['Whether the Court had power under ss 447A and 449C(6) of the Corporations Act 2001 (Cth) to make orders for appointment of replacement administrators where the existing administrators proposed to resign.' 'Whether orders should be made to ensure there was no point in time when no administrators were undertaking the administration of the companies.']

Ratio Decidendi

The Court was satisfied it had power under ss 447A and 449C(6) of the Corporations Act 2001 (Cth) to make the orders sought. Given the existing administrators' intended resignation, the substantial nature of the Arrium Group's operations, KordaMentha's capability to act, creditor support, lack of opposition and the need to avoid any gap in the administration, replacement administrators were appointed to take effect from the date and time the existing administrators resign.

Court Disposition

Application granted; orders made for modified operation of s 449C(6) and appointment of replacement administrators upon resignation of the existing administrators.

Orders

  • ['Pursuant to r 1.39 of the Federal Court Rules 2011, service of this originating process on the respondents be abridged in accordance with r 2.7 of the Federal Court (Corporations Rules) 2000 be abridged to 12 April 2016 at 5.30pm.' 'Pursuant to s 447A of the Corporations Act 2001 (Cth) (the Act), s 449C(6) of that...