In the matter of Auswide Projects Limited (Administrator Appointed) and Auswide Services Limited (Administrator Appointed) [2014] NSWSC 1905

In the matter of Auswide Projects Limited (Administrator Appointed) and Auswide Services Limited (Administrator Appointed) [2014] NSWSC 1905

Although the application was marginal and the valuation difficulties might also arise in liquidation, the extension was justified because there was some prospect that administration could produce a superior result through a possible deed of company arrangement and preservation of the leasehold interest, there was no apparent irremediable prejudice to creditors, contributories or the lessor, and affected persons would have leave to apply to vary or set aside the orders.

Jurisdiction
Australia
Judgment Date
07 October 2014
Procedural Posture
Application by Voluntary Administrators to Extend the Convening Period for the Second Meeting of Creditors / Originating Process; Ex Tempore Procedural Ruling
Outcome
Convening period extended.
Legal Topics
['voluntary Administration' 'extension of Convening Period Under S 439 A' 'second Meeting of Creditors' 'deed of Company Arrangement' 'no Apparent Prejudice to Creditors or Contributories']
['corporations Law' 'insolvency'] ['voluntary Administration' 'extension of Convening Period Under S 439 A' 'second Meeting of Creditors' 'deed of Company Arrangement' 'no Apparent Prejudice to Creditors or Contributories']

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Procedural Posture

Application by Voluntary Administrators to Extend the Convening Period for the Second Meeting of Creditors / Originating Process; Ex Tempore Procedural Ruling

Legal Issues

  1. 1 ['Whether the period within which the administrators must convene the second meeting of creditors should be extended under Corporations Act 2001 (Cth), s 439A(6).' 'Whether the administrators required further time to obtain valuation information and assess options including a possible deed of company arrangement.' 'Whether granting the extension would prejudice creditors, contributories, the lessor, or other affected persons.']

Ratio Decidendi

Although the application was marginal and the valuation difficulties might also arise in liquidation, the extension was justified because there was some prospect that administration could produce a superior result through a possible deed of company arrangement and preservation of the leasehold interest, there was no apparent irremediable prejudice to creditors, contributories or the lessor, and affected persons would have leave to apply to vary or set aside the orders.

Court Disposition

Convening period extended.

Orders

  • ['Pursuant to Corporations Act, s439A(6), the period within which the plaintiffs must convene a second meeting of creditors of the defendant companies within the meaning of s 439A(1) be extended up to and including 16 December 2014.' 'Pursuant to Corporations Act, s 447A(1), the meetings of the creditors of the...