In the matter of Riviera Group Pty Ltd (admins apptd)(recrs & mgrs apptd) [2009] NSWSC 585

In the matter of Riviera Group Pty Ltd (admins apptd)(recrs & mgrs apptd) [2009] NSWSC 585

The administration was sufficiently complex to justify the requested extension: the evidence showed substantial remaining work regarding the receivers' realisation process, employee entitlements, retention of title claims, intercompany loans, the financial position of each company, any proposed deed of company arrangement and possible recovery actions. The extension sought was relatively short and commensurate with the work required, no significant prejudice had been identified, and the balance favoured granting the extension and making a s 447A(1) order to allow the meeting to be held at any time during the extended period.

Jurisdiction
Australia
Judgment Date
15 June 2009
Procedural Posture
Application by Voluntary Administrators for Extension of the Convening Period Under S 439 A(6) and an Order Under S 447 A(1) / Ex Parte Application; Ex Tempore Judgment
Outcome
Extension of convening period granted, as sought.
Legal Topics
['voluntary Administration' "extension of Convening Period for Creditors' Meeting" 'deed of Company Arrangement' 'receivers and Managers' 'statutory Moratorium']
['corporations' 'insolvency'] ['voluntary Administration' "extension of Convening Period for Creditors' Meeting" 'deed of Company Arrangement' 'receivers and Managers' 'statutory Moratorium']

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Procedural Posture

Application by Voluntary Administrators for Extension of the Convening Period Under S 439 A(6) and an Order Under S 447 A(1) / Ex Parte Application; Ex Tempore Judgment

Legal Issues

  1. 1 ['Whether the administrators had established sufficient grounds for an extension of the convening period under s 439A(6).' 'Whether the Court should be predisposed against extensions of the convening period in complex voluntary administrations.' "Whether s 439A should be modified under s 447A(1) to permit the second creditors' meeting to be held at any time during the extended convening period."]

Ratio Decidendi

The administration was sufficiently complex to justify the requested extension: the evidence showed substantial remaining work regarding the receivers' realisation process, employee entitlements, retention of title claims, intercompany loans, the financial position of each company, any proposed deed of company arrangement and possible recovery actions. The extension sought was relatively short and commensurate with the work required, no significant prejudice had been identified, and the balance favoured granting the extension and making a s 447A(1) order to allow the meeting to be held at any time during the extended period.

Court Disposition

Extension of convening period granted, as sought.

Orders

  • ['The convening period was extended to 15 July 2009.' "An order was made under s 447A(1) to permit the administrators to convene and hold the creditors' meeting at any time during the extended convening period." 'Orders were made in the short minutes of order initialled and dated by the Court.']