In the matter of BCD Resources NL (receivers and managers appointed) (administrators appointed) [2015] NSWSC 777

In the matter of BCD Resources NL (receivers and managers appointed) (administrators appointed) [2015] NSWSC 777

An extension of the convening period was justified because, without it, the administrators would not have a final deed of company arrangement proposal to put to creditors and creditors would potentially have no real option other than winding up; however, a 90-day extension was too long given uncertainties about the proposed arrangements, so an initial 45-day extension with liberty to apply was appropriate.

Jurisdiction
Australia
Judgment Date
06 May 2015
Procedural Posture
Application Under S 439 A(6) of the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Meeting of Creditors / Ex Tempore Procedural Ruling
Outcome
Convening period for the second meeting of creditors extended in the first instance by 45 days up to and including 22 June 2015; ancillary orders made; application stood over.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement Proposals']
['corporations' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement Proposals']

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Procedural Posture

Application Under S 439 A(6) of the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Meeting of Creditors / Ex Tempore Procedural Ruling

Legal Issues

  1. 1 ['Whether the Court should extend the convening period for the second meeting of creditors under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether the extension should be for the 90 days sought by the administrators or for a shorter period.']

Ratio Decidendi

An extension of the convening period was justified because, without it, the administrators would not have a final deed of company arrangement proposal to put to creditors and creditors would potentially have no real option other than winding up; however, a 90-day extension was too long given uncertainties about the proposed arrangements, so an initial 45-day extension with liberty to apply was appropriate.

Court Disposition

Convening period for the second meeting of creditors extended in the first instance by 45 days up to and including 22 June 2015; ancillary orders made; application stood over.

Orders

  • ["Upon the plaintiffs' undertaking, by their solicitor, to pay the appropriate filing fee in the registry, the plaintiffs have leave to file in Court the originating process, together with the affidavit of William Anthony Honner sworn 6 May 2015." 'Order that the time for the hearing of the application be abridged...