Lindholm, in the matter of Munday Group Pty Limited (Administrators Appointed) (Receivers and Managers Appointed) (ACN 116 558 420) [2010] FCA 447

Lindholm, in the matter of Munday Group Pty Limited (Administrators Appointed) (Receivers and Managers Appointed) (ACN 116 558 420) [2010] FCA 447

Because unresolved gaming auction issues and other administration tasks meant the Administrators could not adequately report to creditors on the statutory options for the Munday Group, and because holding the second meeting only to adjourn it would cause unnecessary expense for 17 companies with 910 creditors, it was appropriate to extend the convening period to maximise the return for creditors and shareholders.

Jurisdiction
Australia
Judgment Date
07 May 2010
Procedural Posture
Application by Administrators Under the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Meeting of Creditors / Orders and Reasons for Judgment
Outcome
Application granted; convening period extended and ancillary orders made.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'receivers and Managers']
['corporations Law' 'insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'deed of Company Arrangement' 'receivers and Managers']

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Procedural Posture

Application by Administrators Under the Corporations Act 2001 (cth) for Extension of the Convening Period for the Second Meeting of Creditors / Orders and Reasons for Judgment

Legal Issues

  1. 1 ['Whether the convening period for the calling of the second meeting of creditors of the Munday Group should be extended to 16 July 2010 under s 439A(6) of the Corporations Act 2001 (Cth).' 'Whether Pt 5.3A of the Corporations Act 2001 (Cth) should operate so that the second meeting of creditors may be held during the extended convening period and the five business days thereafter notwithstanding s 439A(2).']

Ratio Decidendi

Because unresolved gaming auction issues and other administration tasks meant the Administrators could not adequately report to creditors on the statutory options for the Munday Group, and because holding the second meeting only to adjourn it would cause unnecessary expense for 17 companies with 910 creditors, it was appropriate to extend the convening period to maximise the return for creditors and shareholders.

Court Disposition

Application granted; convening period extended and ancillary orders made.

Orders

  • ['Pursuant to s 439A(6) of the Corporations Act 2001 (Cth) the convening period defined in s 439A(5)(a) in respect of Munday Group Pty Limited (administrators appointed) (receivers and managers appointed) (ACN 116 558 420) and each of the companies listed in the Schedule to the Orders be extended until midnight on...