Lombe, in the matter of Babcock & Brown Limited (Administrators Appointed) [2009] FCA 349

Lombe, in the matter of Babcock & Brown Limited (Administrators Appointed) [2009] FCA 349

The four month extension was appropriate because BBL's administration was unusually complex given the size and structure of the BBL group, the administrators needed substantial time to investigate BBL's and BBIPL's financial affairs, obtain legal advice and consider recoveries or a deed of company arrangement, and there was little apparent prejudice from the extension because BBL had no employees, leases or secured creditors, the substantial creditor body was represented by noteholders and their trustee, no objections were voiced at the first meeting, and the trustee did not object.

Jurisdiction
Australia
Judgment Date
08 April 2009
Procedural Posture
Corporations Application in Voluntary Administration / Application to Extend the Convening Period for the Second Meeting of Creditors Under Sections 439 a and 447 a of the Corporations Act 2001 (cth)
Outcome
Application granted.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'statutory Moratorium' 'deed of Company Arrangement']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'statutory Moratorium' 'deed of Company Arrangement']

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Procedural Posture

Corporations Application in Voluntary Administration / Application to Extend the Convening Period for the Second Meeting of Creditors Under Sections 439 a and 447 a of the Corporations Act 2001 (cth)

Legal Issues

  1. 1 ['Whether the convening period for the second meeting of creditors of Babcock & Brown Limited should be extended to 17 August 2009.' 'Whether orders should permit the second meeting of creditors to be held during, or within 5 business days after the end of, the extended convening period notwithstanding section 439A(2) of the Corporations Act 2001 (Cth).']

Ratio Decidendi

The four month extension was appropriate because BBL's administration was unusually complex given the size and structure of the BBL group, the administrators needed substantial time to investigate BBL's and BBIPL's financial affairs, obtain legal advice and consider recoveries or a deed of company arrangement, and there was little apparent prejudice from the extension because BBL had no employees, leases or secured creditors, the substantial creditor body was represented by noteholders and their trustee, no objections were voiced at the first meeting, and the trustee did not object.

Court Disposition

Application granted.

Orders

  • ['Pursuant to section 439A(6) of the Corporations Act 2001 (Cth), the period within which the First Plaintiffs must convene the second meeting of creditors of each of the Second Plaintiff under section 439A of the Act be extended up to and including 17 August 2009.' 'Pursuant to section 447A(1) of the Act, the...