Pleash, in the matter of Consolidated Tin Mines Limited (Administrators Appointed) [2016] FCA 931

Pleash, in the matter of Consolidated Tin Mines Limited (Administrators Appointed) [2016] FCA 931

The three month extension was reasonably necessary because the administrations of CTM and SPM were substantial and interlocking, the Administrators' investigations, valuations, potential capital raising and possible Deed of Company Arrangement had not been completed, and without an extension the likely outcome on insufficient information would be winding up. The extension would allow creditors to vote on accurate and useful information and meaningful recommendations, with no real commercial risk to third parties, creditors or potential creditors shown on the evidence.

Jurisdiction
Australia
Judgment Date
11 August 2016
Procedural Posture
Corporations Application by Voluntary Administrators / Urgent Application for Extension of Convening Period for Meetings of Creditors
Outcome
Application granted in part; the convening period was extended to 17 November 2016, orders were made permitting the creditors' meetings to be convened together or separately, confidentiality orders were made, and an order for liberty to apply for another extension by the Administrators was not made.
Legal Topics
['voluntary Administration' 'meeting of Creditors' 'extension of Convening Period' 'part 5.3 a of the Corporations Act 2001 (cth)' 'confidentiality and Suppression Orders' "administrators' Costs"]
['corporations' 'insolvency' 'civil Procedure'] ['voluntary Administration' 'meeting of Creditors' 'extension of Convening Period' 'part 5.3 a of the Corporations Act 2001 (cth)' 'confidentiality and Suppression Orders' "administrators' Costs"]

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Procedural Posture

Corporations Application by Voluntary Administrators / Urgent Application for Extension of Convening Period for Meetings of Creditors

Legal Issues

  1. 1 ['Whether the convening period for meetings of creditors of Consolidated Tin Mines Limited and Snow Peak Mining Pty Ltd should be extended under s 439A(6) of the Corporations Act 2001 (Cth) to 17 November 2016.' "Whether orders should be made under s 447A(1) of the Corporations Act 2001 (Cth) to permit the creditors' meetings of the companies to be convened together or separately." 'Whether publication and disclosure of confidential affidavit material should be restricted under s 37AF of the Federal Court of Australia Act 1976 (Cth).']

Ratio Decidendi

The three month extension was reasonably necessary because the administrations of CTM and SPM were substantial and interlocking, the Administrators' investigations, valuations, potential capital raising and possible Deed of Company Arrangement had not been completed, and without an extension the likely outcome on insufficient information would be winding up. The extension would allow creditors to vote on accurate and useful information and meaningful recommendations, with no real commercial risk to third parties, creditors or potential creditors shown on the evidence.

Court Disposition

Application granted in part; the convening period was extended to 17 November 2016, orders were made permitting the creditors' meetings to be convened together or separately, confidentiality orders were made, and an order for liberty to apply for another extension by the Administrators was not made.

Orders

  • ['Pursuant to s 37AF of the Federal Court of Australia Act 1976 (Cth), until further order or 18 November 2016, publication and disclosure of the contents of the confidential affidavit of Blair Alexander Pleash sworn 8 August 2016 and Exhibits BAP22 to BAP27 were prohibited and restricted, on the basis that the...