Ayres, in the matter of CMA Corporation Ltd (Administrators Appointed) [2013] FCA 875

Ayres, in the matter of CMA Corporation Ltd (Administrators Appointed) [2013] FCA 875

The extension was granted because the evidence established substantial issues requiring further investigation and work by the administrators across the CMA Group, including funding arrangements, inter-company loans, asset and security positions, sales processes, possible deeds of company arrangement and insolvent trading; there was a sufficient evidentiary basis for the 60 day estimate; creditors had been notified and no objections were received; there was evidence of creditor support; and there was no evidence of material prejudice to creditors from the moratorium.

Jurisdiction
Australia
Judgment Date
27 August 2013
Procedural Posture
Application by Administrators Pursuant to S 439 A(6) of the Corporations Act 2001 (cth) for Extension of Convening Period / Application Heard and Orders Made on 27 August 2013
Outcome
Application granted; convening period extended to midnight on 29 October 2013 and related orders made under s 447A(1) of the Corporations Act 2001 (Cth).
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'meetings of Creditors' 'part 5.3 a of the Corporations Act 2001 (cth)']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'meetings of Creditors' 'part 5.3 a of the Corporations Act 2001 (cth)']

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Procedural Posture

Application by Administrators Pursuant to S 439 A(6) of the Corporations Act 2001 (cth) for Extension of Convening Period / Application Heard and Orders Made on 27 August 2013

Legal Issues

  1. 1 ['Whether the Court should extend the convening period for the meetings of creditors of the companies under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether orders should be made under s 447A(1) of the Corporations Act 2001 (Cth) modifying the operation of Part 5.3A for the companies.' 'Whether extending the administration was in the best interests of creditors and would avoid material prejudice.']

Ratio Decidendi

The extension was granted because the evidence established substantial issues requiring further investigation and work by the administrators across the CMA Group, including funding arrangements, inter-company loans, asset and security positions, sales processes, possible deeds of company arrangement and insolvent trading; there was a sufficient evidentiary basis for the 60 day estimate; creditors had been notified and no objections were received; there was evidence of creditor support; and there was no evidence of material prejudice to creditors from the moratorium.

Court Disposition

Application granted; convening period extended to midnight on 29 October 2013 and related orders made under s 447A(1) of the Corporations Act 2001 (Cth).

Orders

  • ['The Originating Process be made returnable instanter.' 'Pursuant to section 439A(6) of the Corporations Act 2001 (Cth), the convening period for the meetings of creditors of each of the Companies listed in the annexed Schedule of Companies required to be held pursuant to section 439A be extended to midnight on 29...