In the matter of Ellton Conveyors Pty Ltd (in administration) [2016] NSWSC 1968

In the matter of Ellton Conveyors Pty Ltd (in administration) [2016] NSWSC 1968

A 60 day extension of the convening period was warranted because the administrators had reasonably formed the view that a going concern sale was likely to realise greater value for creditors than a liquidation sale, additional time was reasonably needed to complete the sale process, there appeared to be no prejudice to interested persons, and substantially all interested persons who might be adversely affected supported or did not oppose the extension.

Jurisdiction
Australia
Judgment Date
05 February 2016
Procedural Posture
Corporations Application to Extend the Convening Period in a Voluntary Administration / Ex Tempore Procedural Ruling on Originating Process
Outcome
Convening period extended for 60 days.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'going Concern Sale' 'part 5.3 a of the Corporations Act 2001 (cth)']
['corporations'] ['voluntary Administration' 'extension of Convening Period' 'going Concern Sale' 'part 5.3 a of the Corporations Act 2001 (cth)']

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Procedural Posture

Corporations Application to Extend the Convening Period in a Voluntary Administration / Ex Tempore Procedural Ruling on Originating Process

Legal Issues

  1. 1 ['Whether the convening period for meetings of creditors under s 439A should be extended for 60 days.' 'Whether Part 5.3A should operate so that the second meeting of creditors may be convened and held during the extended period and five business days thereafter.' 'Whether the proposed extension would prejudice creditors, employees, the landlord or the secured creditor.']

Ratio Decidendi

A 60 day extension of the convening period was warranted because the administrators had reasonably formed the view that a going concern sale was likely to realise greater value for creditors than a liquidation sale, additional time was reasonably needed to complete the sale process, there appeared to be no prejudice to interested persons, and substantially all interested persons who might be adversely affected supported or did not oppose the extension.

Court Disposition

Convening period extended for 60 days.

Orders

  • ['Leave granted to the plaintiffs to file the originating process, the originating process made returnable instanter, and service dispensed with.' 'Pursuant to (CTH) Corporations Act 2001, s 439A(6), the convening period for meetings of creditors of Ellton Conveyors Pty Limited (Administrators Appointed), required...