Farnsworth in his capacity as voluntary administrator, in the matter of Monorant Pty Limited (administrator appointed) [2013] FCA 949

Farnsworth in his capacity as voluntary administrator, in the matter of Monorant Pty Limited (administrator appointed) [2013] FCA 949

Given the size and complexity of the administrations, the ongoing sale of business process, and the likelihood of achieving a higher return to creditors if the business is sold during administration, the extensions of the convening periods are justified. No substantial creditor prejudice is demonstrated and key stakeholders do not oppose the relief. Accordingly, the extensions and related orders are appropriate.

Jurisdiction
Australia
Judgment Date
12 September 2013
Procedural Posture
Corporations – Administrations Under Part 5.3 a of the Corporations Act 2001 (cth) – Extensions of Convening Period / Interlocutory – Extension of Convening Period for Second Meeting of Creditors
Outcome
Orders made as sought, including extension of convening periods, modification of Part 5.3A operation, and confidentiality order.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'meetings of Creditors' 'confidentiality Orders']
['corporations Law' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'meetings of Creditors' 'confidentiality Orders']

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Procedural Posture

Corporations – Administrations Under Part 5.3 a of the Corporations Act 2001 (cth) – Extensions of Convening Period / Interlocutory – Extension of Convening Period for Second Meeting of Creditors

Legal Issues

  1. 1 ['Whether the period for convening the second meeting of creditors for each corporate plaintiff should be extended under s 439A(6) of the Corporations Act 2001 (Cth)' 'Whether relief should be granted to permit meetings to take place outside the period specified in s 439A(2)' 'Whether a confidentiality order should be made in relation to specified exhibit material']

Ratio Decidendi

Given the size and complexity of the administrations, the ongoing sale of business process, and the likelihood of achieving a higher return to creditors if the business is sold during administration, the extensions of the convening periods are justified. No substantial creditor prejudice is demonstrated and key stakeholders do not oppose the relief. Accordingly, the extensions and related orders are appropriate.

Court Disposition

Orders made as sought, including extension of convening periods, modification of Part 5.3A operation, and confidentiality order.

Orders

  • ['The period for convening the second meeting of creditors of each corporate plaintiff is extended up to and including 17 November 2013.' 'Meetings of creditors required by s 439A may be held any time during the period up to, or within 5 business days after, 17 November 2013.' 'The costs of and incidental to the...