In the matter of Vical N.S.W. Pty Limited and Arsonello Pty Limited (Administrators Appointed) [2014] NSWSC 1325

In the matter of Vical N.S.W. Pty Limited and Arsonello Pty Limited (Administrators Appointed) [2014] NSWSC 1325

The convening period should be extended because the administrators' proposed going concern sale was likely to better serve the interests of creditors and employees than immediate liquidation, and the prospects of that sale depended on the continuation of the administration and its statutory moratorium; the absence of some secured creditors did not preclude relief because they would be served with the orders and given leave to apply to set aside or vary the extension.

Jurisdiction
Australia
Judgment Date
25 September 2014
Procedural Posture
Corporations List Application Under the Corporations Act 2001 (cth) for Extension of the Convening Period for Meetings of Creditors / Ex Tempore Decision and Orders on 25 September 2014
Outcome
Convening period extended. Leave reserved to interested persons to apply.
Legal Topics
['voluntary Administration' 'meeting of Creditors' 'extension of Convening Period' 'going Concern Sale' 'secured Creditors' 'ppsa Interests' 'statutory Moratorium']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'meeting of Creditors' 'extension of Convening Period' 'going Concern Sale' 'secured Creditors' 'ppsa Interests' 'statutory Moratorium']

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Procedural Posture

Corporations List Application Under the Corporations Act 2001 (cth) for Extension of the Convening Period for Meetings of Creditors / Ex Tempore Decision and Orders on 25 September 2014

Legal Issues

  1. 1 ['Whether the period within which the administrators must convene the second meetings of creditors should be extended up to and including 26 March 2015.' 'Whether the absence of formal notice to the lessor and some secured creditors should prevent the making of the extension order.' 'Whether leave should be reserved to persons with sufficient interest to apply to set aside or vary the extension order.']

Ratio Decidendi

The convening period should be extended because the administrators' proposed going concern sale was likely to better serve the interests of creditors and employees than immediate liquidation, and the prospects of that sale depended on the continuation of the administration and its statutory moratorium; the absence of some secured creditors did not preclude relief because they would be served with the orders and given leave to apply to set aside or vary the extension.

Court Disposition

Convening period extended. Leave reserved to interested persons to apply.

Orders

  • ['Pursuant to Corporations Act, s 449A(6), the period within which the plaintiffs must convene the meetings of creditors of Vical NSW Pty Limited (administrators appointed) ACN 065 390 016 and Arsenello Pty Limited (administrators appointed) ACN 080 140 843 as fixed by s 439A(5) be extended up to and including 26...