Georges, in the matter of Vical N.S.W. Pty Ltd (Administrators Appointed) [2018] FCA 1974

Georges, in the matter of Vical N.S.W. Pty Ltd (Administrators Appointed) [2018] FCA 1974

The Court granted the s 447A orders because the prospect of a director-proposed DOCA, ongoing sale negotiations, support from the major creditors, and Mr Georges' evidence that an extension was likely to improve returns to creditors made it appropriate and consistent with the objects of Pt 5.3A to permit the second meetings of creditors to be adjourned beyond the 45 business day limit until no later than 8 February 2019. The Court was satisfied that s 447A empowered it to make the orders notwithstanding that the relevant limit appeared in r 75-140(3) of the Insolvency Practice Rules (Corporations) 2016.

Jurisdiction
Australia
Judgment Date
05 December 2018
Procedural Posture
Corporations External Administration Application Under S 447 a of the Corporations Act 2001 (cth) / Application for Orders Extending the Period for Adjournment of Second Meetings of Creditors Beyond the Period Prescribed by R 75 140(3) of the Insolvency Practice Rules (corporations) 2016
Outcome
Application granted; orders made extending the permitted adjournment period for the second meetings of creditors to no later than 8 February 2019.
Legal Topics
['voluntary Administration' 'second Meetings of Creditors' "adjournment of Creditors' Meetings" 'deed of Company Arrangement' 'section 447 a Orders']
['corporations' 'insolvency' 'external Administration'] ['voluntary Administration' 'second Meetings of Creditors' "adjournment of Creditors' Meetings" 'deed of Company Arrangement' 'section 447 a Orders']

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

Corporations External Administration Application Under S 447 a of the Corporations Act 2001 (cth) / Application for Orders Extending the Period for Adjournment of Second Meetings of Creditors Beyond the Period Prescribed by R 75 140(3) of the Insolvency Practice Rules (corporations) 2016

Legal Issues

  1. 1 ['Whether the Court should order under s 447A of the Corporations Act 2001 (Cth) that Pt 5.3A operate so as to permit adjournment of the second meetings of creditors beyond the 45 business day limit in r 75-140(3) of the Insolvency Practice Rules (Corporations) 2016.' 'Whether s 447A of the Corporations Act 2001 (Cth) empowers the Court to make an order affecting the operation of a time limit prescribed by the Insolvency Practice Rules (Corporations) 2016 in relation to meetings convened under s 439A of the Act.' 'Whether the proposed extension was in the interests of creditors and consistent with the objects of Pt 5.3A of the Act.']

Ratio Decidendi

The Court granted the s 447A orders because the prospect of a director-proposed DOCA, ongoing sale negotiations, support from the major creditors, and Mr Georges' evidence that an extension was likely to improve returns to creditors made it appropriate and consistent with the objects of Pt 5.3A to permit the second meetings of creditors to be adjourned beyond the 45 business day limit until no later than 8 February 2019. The Court was satisfied that s 447A empowered it to make the orders notwithstanding that the relevant limit appeared in r 75-140(3) of the Insolvency Practice Rules (Corporations) 2016.

Court Disposition

Application granted; orders made extending the permitted adjournment period for the second meetings of creditors to no later than 8 February 2019.

Orders

  • ['Pursuant to s 447A(1) of the Corporations Act 2001 (Cth), Pt 5.3A of the Act is to operate in relation to the administration of Vical N.S.W. Pty Ltd (Administrators Appointed) (ACN 065 390 016) and Arsonello Pty Ltd (Administrators Appointed) (ACN 080 140 843) as if r 75-140(3) of the Insolvency Practice Rules...