Preston, in the matter of Toys 'R' Us (Australia) Pty Ltd (Administrators Appointed) [2018] FCA 940

Preston, in the matter of Toys 'R' Us (Australia) Pty Ltd (Administrators Appointed) [2018] FCA 940

Although a four-month extension was significant, the sale process was complex and substantial work remained, including potential negotiations with landlords, suppliers and the intellectual property licensor. The extension would allow the administrators to pursue a sale or other realisation options and investigate the companies' affairs for creditors' benefit, and no creditor opposition had been raised. The Court was therefore persuaded to extend the convening periods and grant consequential relief.

Jurisdiction
Australia
Judgment Date
14 June 2018
Procedural Posture
Corporations Application for Extension of Time to Convene Second Meetings of Creditors and Consequential Relief / Application Heard and Orders Made on 14 June 2018
Outcome
Application granted.
Legal Topics
['voluntary Administration' 'extension of Convening Period for Second Meeting of Creditors' 'sale of Business as a Going Concern' 'suppression Orders']
['corporations' 'corporate Insolvency'] ['voluntary Administration' 'extension of Convening Period for Second Meeting of Creditors' 'sale of Business as a Going Concern' 'suppression Orders']

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Procedural Posture

Corporations Application for Extension of Time to Convene Second Meetings of Creditors and Consequential Relief / Application Heard and Orders Made on 14 June 2018

Legal Issues

  1. 1 ["Whether the convening periods for the second meetings of creditors of Toys 'R' Us (Australia) Pty Ltd (Administrators Appointed) and Babies 'R' Us (Australia) Pty Ltd (Administrators Appointed) should be extended under s 439A(6) of the Corporations Act 2001 (Cth)." 'Whether consequential relief should be granted under s 447A(1) of the Corporations Act 2001 (Cth) so that the second meetings may be convened during, or within 5 business days after the end of, the extended convening periods.' 'Whether suppression orders should be made under s 37AF of the Federal Court of Australia Act 1976 (Cth).']

Ratio Decidendi

Although a four-month extension was significant, the sale process was complex and substantial work remained, including potential negotiations with landlords, suppliers and the intellectual property licensor. The extension would allow the administrators to pursue a sale or other realisation options and investigate the companies' affairs for creditors' benefit, and no creditor opposition had been raised. The Court was therefore persuaded to extend the convening periods and grant consequential relief.

Court Disposition

Application granted.

Orders

  • ['Pursuant to s 439A(6) of the Corporations Act 2001 (Cth), the convening periods for the second meetings of creditors of the Companies were extended up to and including 19 October 2018.' 'Pursuant to s 447A(1) of the Corporations Act 2001 (Cth), Part 5.3A of the Act is to operate so that, notwithstanding s 439A(2),...