Duncan, in the matter of Megafert Pty Ltd (Administrators Appointed) [2011] FCA 785

Duncan, in the matter of Megafert Pty Ltd (Administrators Appointed) [2011] FCA 785

The convening periods were extended because the administrators, without default or failure on their part, did not yet have sufficient information to provide creditors with an accurate report and opinions under s 439A(4), a deed of company arrangement from Superfert Pty Ltd was a realistic possibility, creditors should have the opportunity to consider that possibility with the administrators' assistance, and adjournment under s 439B(2) would cause unnecessary cost and expense. The evidence justified an extension of about three months.

Jurisdiction
Australia
Judgment Date
15 July 2011
Procedural Posture
Application by Voluntary Administrators for Extension of the Convening Period for Meetings of Creditors / Reasons for Orders Made on 9 June 2011
Outcome
Orders made extending the convening periods for the creditors' meetings of Megafert Pty Ltd and Interfert Australia Pty Ltd and making ancillary orders.
Legal Topics
['voluntary Administration' 'extension of Convening Period' "creditors' Meetings" 'deed of Company Arrangement']
['corporations Law' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' "creditors' Meetings" 'deed of Company Arrangement']

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Procedural Posture

Application by Voluntary Administrators for Extension of the Convening Period for Meetings of Creditors / Reasons for Orders Made on 9 June 2011

Legal Issues

  1. 1 ['Whether the period within which the administrators of Megafert Pty Ltd and Interfert Australia Pty Ltd must convene meetings of creditors under s 439A of the Corporations Act 2001 should be extended under s 439A(6).' "Whether orders should be made under s 447A(1) allowing the creditors' meetings to be held during, or within 5 business days after the end of, the extended convening period notwithstanding s 439A(2)."]

Ratio Decidendi

The convening periods were extended because the administrators, without default or failure on their part, did not yet have sufficient information to provide creditors with an accurate report and opinions under s 439A(4), a deed of company arrangement from Superfert Pty Ltd was a realistic possibility, creditors should have the opportunity to consider that possibility with the administrators' assistance, and adjournment under s 439B(2) would cause unnecessary cost and expense. The evidence justified an extension of about three months.

Court Disposition

Orders made extending the convening periods for the creditors' meetings of Megafert Pty Ltd and Interfert Australia Pty Ltd and making ancillary orders.

Orders

  • ['Pursuant to s 439A(6) of the Corporations Act 2001 the period within which the administrators of Megafert Pty Ltd (Administrators Appointed) must convene a meeting of creditors under s 439A of the Act is extended up to and including 20 September 2011.' 'Pursuant to s 439A(6) of the Act the period within which the...