Re Priceright Construction Pty Limited [2006] NSWSC 324

Re Priceright Construction Pty Limited [2006] NSWSC 324

Because the deed of company arrangement proposal was realistic, well advanced and likely to give unsecured creditors a substantially better return than winding up, further time was warranted; s.447A was broad enough to make Part 5.3A operate in relation to the company as if the s.439B(2) 60 day limit were extended and as if adjournment to 31 May 2006 were permitted despite regulation 5.6.18(2).

Jurisdiction
Australia
Judgment Date
21 April 2006
Procedural Posture
Corporations Application Under S.447 a of the Corporations Act 2001 (cth) Concerning Voluntary Administration / Ex Parte Application for Orders Permitting Further Adjournment of the Second Meeting of Creditors
Outcome
Order under s.447A made; order reserving leave to interested persons to apply to vary the substantive order on 24 hours' notice also made.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' "adjournment of Creditors' Meeting" 'extension of Statutory Deadline' 'deed of Company Arrangement Proposal' 'corporations Act 2001 (cth) S.447 A']
['corporations Law'] ['voluntary Administration' 'second Meeting of Creditors' "adjournment of Creditors' Meeting" 'extension of Statutory Deadline' 'deed of Company Arrangement Proposal' 'corporations Act 2001 (cth) S.447 A']

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Procedural Posture

Corporations Application Under S.447 a of the Corporations Act 2001 (cth) Concerning Voluntary Administration / Ex Parte Application for Orders Permitting Further Adjournment of the Second Meeting of Creditors

Legal Issues

  1. 1 ['Whether an order under s.447A of the Corporations Act 2001 (Cth) may be made so that the second meeting of creditors convened under s.439A can be adjourned beyond the 60 day limit in s.439B(2).' 'Whether such an order may also address the identical 60 day limit imposed by regulation 5.6.18(2) of the Corporations Regulations 2001 (Cth).' 'Whether the circumstances justified further time for the administrators to pursue a deed of company arrangement proposal.']

Ratio Decidendi

Because the deed of company arrangement proposal was realistic, well advanced and likely to give unsecured creditors a substantially better return than winding up, further time was warranted; s.447A was broad enough to make Part 5.3A operate in relation to the company as if the s.439B(2) 60 day limit were extended and as if adjournment to 31 May 2006 were permitted despite regulation 5.6.18(2).

Court Disposition

Order under s.447A made; order reserving leave to interested persons to apply to vary the substantive order on 24 hours' notice also made.

Orders

  • ["Order pursuant to section 447A of the Corporations Act that Part 5.3A of that Act is to operate in relation to Priceright Construction Pty Limited as if section 439B(2) omitted all words after 'a day that is' and included instead of the omitted words the words 'later than 31 May 2006' and as if that Part allowed...