Farnsworth in his capacity as voluntary administrator, in the matter of Monorant Pty Limited (administrator appointed) (No 3) [2013] FCA 1400

Farnsworth in his capacity as voluntary administrator, in the matter of Monorant Pty Limited (administrator appointed) (No 3) [2013] FCA 1400

The convening period was further extended as sought to allow resolution of shareholder loan disputes and possible deed of company arrangement proposals, which are likely to result in a greater return to creditors than immediate liquidation. The administrator was justified in paying priority employee entitlements prior to any liquidation or deed of company arrangement since assets were sufficient and entitlements would be paid in full in any event.

Jurisdiction
Australia
Judgment Date
13 December 2013
Procedural Posture
Extension of Convening Period in Administration / Interlocutory Application; Orders for Further Extension
Outcome
Application granted; orders made for further extension of convening period and directions to pay employee entitlements.
Legal Topics
['administration Under Part 5.3 A' 'extension of Convening Period' 'deed of Company Arrangement' 'priority Employee Entitlements']
['corporations'] ['administration Under Part 5.3 A' 'extension of Convening Period' 'deed of Company Arrangement' 'priority Employee Entitlements']

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Procedural Posture

Extension of Convening Period in Administration / Interlocutory Application; Orders for Further Extension

Legal Issues

  1. 1 ['Should the convening period for the second meeting of creditors of the plaintiff companies be further extended under Part 5.3A of the Corporations Act 2001 (Cth)?' 'Should the voluntary administrator be entitled to pay priority employee entitlements prior to any liquidation or deed of company arrangement?']

Ratio Decidendi

The convening period was further extended as sought to allow resolution of shareholder loan disputes and possible deed of company arrangement proposals, which are likely to result in a greater return to creditors than immediate liquidation. The administrator was justified in paying priority employee entitlements prior to any liquidation or deed of company arrangement since assets were sufficient and entitlements would be paid in full in any event.

Court Disposition

Application granted; orders made for further extension of convening period and directions to pay employee entitlements.

Orders

  • ['The convening period for the second meeting of creditors for the second to eighth plaintiffs is extended up to and including 14 February 2014.' 'Meetings of creditors may be held up to or within 5 business days after 14 February 2014.' 'Notice of orders must be given to all creditors by specified means and...