In the matter of Henry Walker Eltin Group Ltd (Administrators Appointed) [2005] FCA 994

In the matter of Henry Walker Eltin Group Ltd (Administrators Appointed) [2005] FCA 994

Given the scale, complexity and expected duration of the administrations, the delay before the second creditors' meeting, the substantial work already undertaken by the administrators, notice to creditors, and ASIC's non-opposition, it was appropriate to make orders under s 447A modifying the operation of ss 449E and 436F(1) so that committees of creditors could fix administrators' remuneration after specified notice and disclosure, with review rights preserved, while limiting the orders to companies with relevant committees of creditors and reserving further consideration for other entities.

Jurisdiction
Australia
Judgment Date
31 March 2005
Procedural Posture
Application in Voluntary Administration Under the Corporations Act 2001 (cth) / Ex Parte Application for Orders Under S 447 a Concerning Administrators' Remuneration
Outcome
Orders made with a qualification limiting the companies covered and reserving further consideration for specified companies.
Legal Topics
['voluntary Administration' "administrators' Remuneration" 'committee of Creditors' 'orders Modifying Operation of Part 5.3 A']
['corporations Law' 'insolvency Law'] ['voluntary Administration' "administrators' Remuneration" 'committee of Creditors' 'orders Modifying Operation of Part 5.3 A']

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Procedural Posture

Application in Voluntary Administration Under the Corporations Act 2001 (cth) / Ex Parte Application for Orders Under S 447 a Concerning Administrators' Remuneration

Legal Issues

  1. 1 ["Whether orders should be made under s 447A of the Corporations Act 2001 (Cth) so that s 449E and s 436F(1) operate to allow committees of creditors to fix administrators' remuneration before the second meeting of creditors." "Whether adequate notice and procedural safeguards should apply to committee of creditors meetings fixing administrators' remuneration." 'Whether the orders should apply to all entities in the Henry Walker Eltin Group or only those with a committee of creditors capable of fixing remuneration.']

Ratio Decidendi

Given the scale, complexity and expected duration of the administrations, the delay before the second creditors' meeting, the substantial work already undertaken by the administrators, notice to creditors, and ASIC's non-opposition, it was appropriate to make orders under s 447A modifying the operation of ss 449E and 436F(1) so that committees of creditors could fix administrators' remuneration after specified notice and disclosure, with review rights preserved, while limiting the orders to companies with relevant committees of creditors and reserving further consideration for other entities.

Court Disposition

Orders made with a qualification limiting the companies covered and reserving further consideration for specified companies.

Orders

  • ['Pursuant to s 447A of the Corporations Act 2001 (Cth), s 449E of the Act will operate in relation to each company in Schedule 1 as if the administrator is entitled to remuneration fixed by the committee of creditors after at least 7 days written notice with specified details, by creditors at a meeting under s 439A...