Algeri, in the matter of WBHO Australia Pty Ltd (Administrators Appointed) (No 2) [2022] FCA 234

Algeri, in the matter of WBHO Australia Pty Ltd (Administrators Appointed) (No 2) [2022] FCA 234

Given the complexity of the administration, ongoing trading and sale processes, and absence of creditor opposition, it is in the best interests of creditors and the statutory requirements to extend the convening period to 24 June 2022, make Daisytek orders, and grant limited leave for committee of inspection members to derive profit or advantage, excluding gifts or committee-specific remuneration.

Parties
First Plaintiff: Salvatore Algeri, Jason Tracy, Matthew Donnelly and David Orr in their capacities as joint and several Administrators of WBHO Australia Pty Ltd (Administrators Appointed) (ACN 095 983 681); Second Plaintiff: WBHO Construction Australia Pty Ltd (Administrators Appointed) (ACN 149 901 931); Third Plaintiff: WBHO Infrastructure Pty Ltd (Administrators Appointed) (ACN 089 434 220); Fourth Plaintiff: Carr Civil Contracting Pty Ltd (Administrators Appointed) (ACN 100 438 257); Fifth Plaintiff: Northcoast Holdings Pty Ltd (Administrators Appointed) (ACN 009 296 780); Sixth Plaintiff: Probuild Constructions (Aust) Pty Ltd (Administrators Appointed) (ACN 095 250 945); Seventh Plaintiff: Probuild Civil Pty Ltd (Administrators Appointed) (ACN 010 870 587); Eighth Plaintiff: PCA (QLD) Pty Ltd (Administrators Appointed) (ACN 141 148 245); Ninth Plaintiff: Probuild Constructions (NSW) Pty Ltd (Administrators Appointed) (ACN 165 675 874); Tenth Plaintiff: Probuild Constructions (VIC) Pty Ltd (Administrators Appointed) (ACN 165 675 865); Eleventh Plaintiff: Probuild Constructions (WA) Pty Ltd (Administrators Appointed) (ACN 165 676 095); Twelfth Plaintiff: Probuild Constructions (QLD) Pty Ltd (Administrators Appointed) (ACN 166 966 034); Thirteenth Plaintiff: ACN 098 866 794 Pty Ltd (Administrators Appointed) (ACN 098 866 794); Fourteenth Plaintiff: Contexx Holdings Pty Ltd (Administrators Appointed) (ACN 144 707 022); Fifteenth Plaintiff: Contexx Pty Ltd (Administrators Appointed) (ACN 147 249 796); Sixteenth Plaintiff: Prodev Murphy Pty Ltd (Administrators Appointed) (ACN 120 758 803); Seventeenth Plaintiff: Prodev Investments 4 Pty Ltd (Administrators Appointed) (ACN 629 246 653); Eighteenth Plaintiff: Monaco Hickey Pty Ltd (Administrators Appointed) (ACN 144 945 611); Nineteenth Plaintiff: WBHO Australia Pty Ltd (Administrators Appointed) (ACN 095 983 681)
Jurisdiction
Australia
Judgment Date
16 March 2022
Procedural Posture
Application Under the Corporations Act for Voluntary Administration Orders / Post Administration Application for Extension of Creditors Meeting Period and Orders Concerning Committees
Outcome
Orders made as sought by the administrators
Legal Topics
Voluntary Administration, Extension of Convening Period, Committees of Inspection, External Administration, Leave to Derive Profit or Advantage
Corporations Law Insolvency Voluntary Administration Extension of Convening Period Committees of Inspection External Administration Leave to Derive Profit or Advantage

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2
Sign in to unlock

Parties

Salvatore Algeri, Jason Tracy, Matthew Donnelly and David Orr in their capacities as joint and several Administrators of WBHO Australia Pty Ltd (Administrators Appointed) (ACN 095 983 681)

First Plaintiff

WBHO Construction Australia Pty Ltd (Administrators Appointed) (ACN 149 901 931)

Second Plaintiff

WBHO Infrastructure Pty Ltd (Administrators Appointed) (ACN 089 434 220)

Third Plaintiff

Carr Civil Contracting Pty Ltd (Administrators Appointed) (ACN 100 438 257)

Fourth Plaintiff

Northcoast Holdings Pty Ltd (Administrators Appointed) (ACN 009 296 780)

Fifth Plaintiff

Probuild Constructions (Aust) Pty Ltd (Administrators Appointed) (ACN 095 250 945)

Sixth Plaintiff

Probuild Civil Pty Ltd (Administrators Appointed) (ACN 010 870 587)

Seventh Plaintiff

PCA (QLD) Pty Ltd (Administrators Appointed) (ACN 141 148 245)

Eighth Plaintiff

Probuild Constructions (NSW) Pty Ltd (Administrators Appointed) (ACN 165 675 874)

Ninth Plaintiff

Probuild Constructions (VIC) Pty Ltd (Administrators Appointed) (ACN 165 675 865)

Tenth Plaintiff

Probuild Constructions (WA) Pty Ltd (Administrators Appointed) (ACN 165 676 095)

Eleventh Plaintiff

Probuild Constructions (QLD) Pty Ltd (Administrators Appointed) (ACN 166 966 034)

Twelfth Plaintiff

ACN 098 866 794 Pty Ltd (Administrators Appointed) (ACN 098 866 794)

Thirteenth Plaintiff

Contexx Holdings Pty Ltd (Administrators Appointed) (ACN 144 707 022)

Fourteenth Plaintiff

Contexx Pty Ltd (Administrators Appointed) (ACN 147 249 796)

Fifteenth Plaintiff

Prodev Murphy Pty Ltd (Administrators Appointed) (ACN 120 758 803)

Sixteenth Plaintiff

Prodev Investments 4 Pty Ltd (Administrators Appointed) (ACN 629 246 653)

Seventeenth Plaintiff

Monaco Hickey Pty Ltd (Administrators Appointed) (ACN 144 945 611)

Eighteenth Plaintiff

WBHO Australia Pty Ltd (Administrators Appointed) (ACN 095 983 681)

Nineteenth Plaintiff

Procedural Posture

Application Under the Corporations Act for Voluntary Administration Orders / Post Administration Application for Extension of Creditors Meeting Period and Orders Concerning Committees

Legal Issues

  1. 1 Whether the convening period for the second meeting of creditors should be extended under s 439A(6) of the Corporations Act 2001 (Cth)
  2. 2 Whether the Court should make 'Daisytek orders' regarding the timing of the second meeting under s 447A of the Corporations Act
  3. 3 Whether leave should be granted to members of committees of inspection to derive profit or advantage from the administration under s 80-55(5) and s 90-15 of the Insolvency Practice Schedule (Corporations)

Ratio Decidendi

Given the complexity of the administration, ongoing trading and sale processes, and absence of creditor opposition, it is in the best interests of creditors and the statutory requirements to extend the convening period to 24 June 2022, make Daisytek orders, and grant limited leave for committee of inspection members to derive profit or advantage, excluding gifts or committee-specific remuneration.

Court Disposition

Orders made as sought by the administrators

Orders

  • The convening period for the second meeting of creditors for the plaintiff companies is extended until 24 June 2022.
  • The administrators may hold the second meeting of creditors any time during, or five business days after, the extended period with at least five business days' notice to creditors.