Aqa Oysters Limited, in the matter of Aqa Oysters Limited (Administrators Appointed) (Receivers and Managers Appointed) [2011] FCA 68

Aqa Oysters Limited, in the matter of Aqa Oysters Limited (Administrators Appointed) (Receivers and Managers Appointed) [2011] FCA 68

The convening period should be extended because there was a sufficient prospect of a deed of company arrangement being put to creditors, no unreasonable delay in the receivership, no unreasonableness in Elders awaiting the receivership outcome before finalising a deed proposal, creditor committee support, weight to be given to the administrator's view that he could not yet prepare the s 439A(4) report and would otherwise recommend adjournment, likely additional costs if no extension were granted, ongoing obligations being met, and no apparent prejudice from the administration moratorium.

Jurisdiction
Australia
Judgment Date
11 February 2011
Procedural Posture
Application Under S 439 A(6) and S 447 a of the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Creditors' Meeting / Interlocutory Application; Reasons for Orders Made on 19 January 2011
Outcome
Application granted; convening period extended until 24 March 2011.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'receivers and Managers' 'moratorium During Administration']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'receivers and Managers' 'moratorium During Administration']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 1 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application Under S 439 A(6) and S 447 a of the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Creditors' Meeting / Interlocutory Application; Reasons for Orders Made on 19 January 2011

Legal Issues

  1. 1 ['Whether the convening period prescribed by s 439A(5) of the Corporations Act 2001 (Cth), previously extended until 25 January 2011, should be further extended until 24 March 2011.' 'Whether orders should be made under s 447A of the Corporations Act 2001 (Cth) permitting the plaintiffs to hold the second meeting of creditors within the extended convening period and dispensing to that extent with s 439A(2).']

Ratio Decidendi

The convening period should be extended because there was a sufficient prospect of a deed of company arrangement being put to creditors, no unreasonable delay in the receivership, no unreasonableness in Elders awaiting the receivership outcome before finalising a deed proposal, creditor committee support, weight to be given to the administrator's view that he could not yet prepare the s 439A(4) report and would otherwise recommend adjournment, likely additional costs if no extension were granted, ongoing obligations being met, and no apparent prejudice from the administration moratorium.

Court Disposition

Application granted; convening period extended until 24 March 2011.

Orders

  • ['The convening period prescribed by s 439A(5) of the Corporations Act 2001 (Cth), as extended by orders of this Court on 18 November 2010 until 25 January 2011, was extended until 24 March 2011 in respect of Aqa Oysters Limited (Administrators Appointed) (Receivers and Managers Appointed) ACN 120 978 172.'...