Tracy, in the matter of In2Food Australia Pty Ltd [2021] FCA 1104

Tracy, in the matter of In2Food Australia Pty Ltd [2021] FCA 1104

Extension of convening period granted as the size and complexity of the business, impact of COVID-19 restrictions, necessary sale and/or recapitalisation process, and likelihood of maximising creditor returns warrant additional time under s 439A(6) of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
08 September 2021
Procedural Posture
Application / Interlocutory Extension of Convening Period Under Administration
Outcome
Application granted - extension of convening period ordered.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'creditor Meetings' 'sale or Recapitalisation Process' 'covid 19 Impact']
['corporations'] ['voluntary Administration' 'extension of Convening Period' 'creditor Meetings' 'sale or Recapitalisation Process' 'covid 19 Impact']

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Procedural Posture

Application / Interlocutory Extension of Convening Period Under Administration

Legal Issues

  1. 1 ["Whether circumstances warrant extension of the convening period for second creditors' meeting under s 439A(6) of Corporations Act 2001 (Cth)" 'Whether the extension will likely maximise the return to creditors']

Ratio Decidendi

Extension of convening period granted as the size and complexity of the business, impact of COVID-19 restrictions, necessary sale and/or recapitalisation process, and likelihood of maximising creditor returns warrant additional time under s 439A(6) of the Corporations Act 2001 (Cth).

Court Disposition

Application granted - extension of convening period ordered.

Orders

  • ['Convening period for second meeting of creditors extended from 10 September 2021 up to and including 10 December 2021.' 'Part 5.3A of Corporations Act operates as if meeting of creditors may be convened and held anytime during extended period plus 5 business days, notwithstanding s 439A(2).' 'Plaintiffs to give...