Albarran, in the matter of BCJWY Aboriginal Society Limited [2019] FCA 491

Albarran, in the matter of BCJWY Aboriginal Society Limited [2019] FCA 491

Although the application was made after the convening period had ended and the explanation for that delay was not satisfactory, the Court was satisfied that extending the convening period was in the best interests of creditors because the administrators needed time to assess the Company's possible entitlement in the FCA proceedings, that entitlement appeared to be the only possible avenue of return to creditors, the Company had ceased trading, there was no obvious prejudice to creditors or persons affected by the moratorium, and the extension sought was relatively short.

Jurisdiction
Australia
Judgment Date
05 April 2019
Procedural Posture
Application by Administrators to Extend the Convening Period for the Second Meeting of Creditors of a Company in Administration / Judgment and Orders on Application Filed After the Convening Period Had Ended
Outcome
Application granted; convening period extended.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'best Interests of Creditors']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'best Interests of Creditors']

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Procedural Posture

Application by Administrators to Extend the Convening Period for the Second Meeting of Creditors of a Company in Administration / Judgment and Orders on Application Filed After the Convening Period Had Ended

Legal Issues

  1. 1 ['Whether the Court should extend the convening period for the second meeting of creditors under s 439A of the Corporations Act 2001 (Cth) where the application was made after the convening period had ended.' 'Whether the Court was satisfied under s 439A(7) that the extension was in the best interests of creditors.']

Ratio Decidendi

Although the application was made after the convening period had ended and the explanation for that delay was not satisfactory, the Court was satisfied that extending the convening period was in the best interests of creditors because the administrators needed time to assess the Company's possible entitlement in the FCA proceedings, that entitlement appeared to be the only possible avenue of return to creditors, the Company had ceased trading, there was no obvious prejudice to creditors or persons affected by the moratorium, and the extension sought was relatively short.

Court Disposition

Application granted; convening period extended.

Orders

  • ['The period for the administrators to convene a meeting of the creditors of BCJWY Aboriginal Society Limited ACN 150 290 234 (Administrators Appointed) under ss 439A(1) and 439A(5) of the Corporations Act 2001 (Cth) be extended by 49 days so that it ends on 24 May 2019.' 'Part 5.3A of the Corporations Act is to...