Weston, in the matter of 7 Steel Distribution Pty Limited (ACN 131 352 364)(Administrators Appointed)(Receivers and Managers Appointed) (No 2) [2010] FCA 593

Weston, in the matter of 7 Steel Distribution Pty Limited (ACN 131 352 364)(Administrators Appointed)(Receivers and Managers Appointed) (No 2) [2010] FCA 593

The Court granted the further extension because the evidence showed real utility in allowing more time: sale negotiations were completed or advanced, proceeds of sale of inventory subject to retention of title claims would be quarantined, rent and employee entitlements were being paid, creditors had not objected, and an extension would likely assist in producing funds for unsecured creditors while allowing the administrators to provide accurate information and recommendations at the second meeting.

Jurisdiction
Australia
Judgment Date
02 June 2010
Procedural Posture
Application Under Section 439 A(6) or Section 447 a of the Corporations Act 2001 (cth) for a Second Extension of the Convening Period for the Second Meeting of Creditors / Interlocutory Process Returnable Instanter
Outcome
Application granted; convening period extended to midnight on 2 August 2010 and ancillary orders made.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'meeting of Creditors' 'retention of Title Claims' 'deed of Company Arrangement']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'meeting of Creditors' 'retention of Title Claims' 'deed of Company Arrangement']

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Procedural Posture

Application Under Section 439 A(6) or Section 447 a of the Corporations Act 2001 (cth) for a Second Extension of the Convening Period for the Second Meeting of Creditors / Interlocutory Process Returnable Instanter

Legal Issues

  1. 1 ['Whether the Court should grant a second extension of the convening period for the meeting of creditors of the second plaintiff.' 'Whether the extension should be made under section 447A of the Corporations Act 2001 (Cth).' 'Whether a two month extension would strike the appropriate balance between speedy administration and maximising returns for creditors.']

Ratio Decidendi

The Court granted the further extension because the evidence showed real utility in allowing more time: sale negotiations were completed or advanced, proceeds of sale of inventory subject to retention of title claims would be quarantined, rent and employee entitlements were being paid, creditors had not objected, and an extension would likely assist in producing funds for unsecured creditors while allowing the administrators to provide accurate information and recommendations at the second meeting.

Court Disposition

Application granted; convening period extended to midnight on 2 August 2010 and ancillary orders made.

Orders

  • ['Upon the making of the usual undertaking to pay Court fees, the Plaintiffs are granted leave to file in Court the Interlocutory Process dated 31 May 2010 and the Affidavit of Paul Gerard Weston sworn on 31 May 2010.' 'The interlocutory process is returnable instanter.' 'Pursuant to section 447A(1) of the...