Sarantinos, in the matter of Payless Shoes Pty Ltd (Administrators Appointed) [2016] FCA 1512

Sarantinos, in the matter of Payless Shoes Pty Ltd (Administrators Appointed) [2016] FCA 1512

The plaintiffs established a sufficient basis for a 90-day extension of the convening period to facilitate a going concern sale or an orderly realisation of assets, as this approach is in the best interests of creditors and appropriately uses the statutory moratorium afforded by voluntary administration.

Parties
First Plaintiffs: Jim Sarantinos, James Stewart and Peter Gothard as joint and several voluntary administrators of Payless Shoes Pty Ltd (Administrators Appointed) ACN 162 529 455; Second Plaintiff: Payless Shoes Pty Ltd (Administrators Appointed) ACN 162 529 455
Jurisdiction
Australia
Judgment Date
09 December 2016
Procedural Posture
Corporations – Voluntary Administration / Application to Extend the Convening Period for the Second Meeting of Creditors
Outcome
Orders made as sought granting an extension of 90 days for the convening period with directions for notification to creditors and ASIC, and costs to be paid from company assets.
Legal Topics
Voluntary Administration, Extension of Convening Period, Meetings of Creditors
Corporations Law Insolvency Voluntary Administration Extension of Convening Period Meetings of Creditors

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Parties

Jim Sarantinos, James Stewart and Peter Gothard as joint and several voluntary administrators of Payless Shoes Pty Ltd (Administrators Appointed) ACN 162 529 455

First Plaintiffs

Payless Shoes Pty Ltd (Administrators Appointed) ACN 162 529 455

Second Plaintiff

Procedural Posture

Corporations – Voluntary Administration / Application to Extend the Convening Period for the Second Meeting of Creditors

Legal Issues

  1. 1 Whether the convening period for the second meeting of creditors should be extended under s 439A(6) of the Corporations Act 2001 (Cth)
  2. 2 Whether the orders sought facilitate the proper conduct of the voluntary administration

Ratio Decidendi

The plaintiffs established a sufficient basis for a 90-day extension of the convening period to facilitate a going concern sale or an orderly realisation of assets, as this approach is in the best interests of creditors and appropriately uses the statutory moratorium afforded by voluntary administration.

Court Disposition

Orders made as sought granting an extension of 90 days for the convening period with directions for notification to creditors and ASIC, and costs to be paid from company assets.

Orders

  • The convening period for the meeting of creditors required by s 439A of the Corporations Act 2001 (Cth) is extended to midnight on 20 March 2017.
  • Pt 5.3A of the Act operates as specified in order 2 to permit convening and holding of the second meeting within the extended period, subject to s 439A(3) and (4).