Lau, in the matter of Blayney Crane Services Pty Limited (Administrators appointed) [2013] FCA 696

Lau, in the matter of Blayney Crane Services Pty Limited (Administrators appointed) [2013] FCA 696

The Court found that the administrators made an honest and inadvertent error in calculating the convening period, acted diligently in notifying creditors and ASIC, and that the extension would advance the purposes of Part 5.3A of the Corporations Act by allowing a deed of company arrangement proposal to be considered, potentially yielding a better outcome for creditors than liquidation.

Parties
Administrator: Melissa Poh Bee Lau; Administrator: Geoffrey Philip Reidy
Jurisdiction
Australia
Judgment Date
12 July 2013
Procedural Posture
Corporate Insolvency Application / Application for Orders During Voluntary Administration
Outcome
Application granted
Legal Topics
Extension of Convening Period, Meeting of Creditors, Voluntary Administration, Deed of Company Arrangement
Corporations Extension of Convening Period Meeting of Creditors Voluntary Administration Deed of Company Arrangement

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Parties

Melissa Poh Bee Lau

Administrator

Geoffrey Philip Reidy

Administrator

Procedural Posture

Corporate Insolvency Application / Application for Orders During Voluntary Administration

Legal Issues

  1. 1 Whether to grant an extension of the convening period for the second meeting of creditors under s 439A(6) of the Corporations Act 2001 (Cth)
  2. 2 Whether to permit the meeting to be held within 5 business days after the extended convening period under s 447A(1)
  3. 3 Whether an honest error in calculation justifies the extension

Ratio Decidendi

The Court found that the administrators made an honest and inadvertent error in calculating the convening period, acted diligently in notifying creditors and ASIC, and that the extension would advance the purposes of Part 5.3A of the Corporations Act by allowing a deed of company arrangement proposal to be considered, potentially yielding a better outcome for creditors than liquidation.

Court Disposition

Application granted

Orders

  • The convening period for the meeting of creditors is extended up to and including Thursday 18 July 2013.
  • The meeting of creditors may be held at any time during, or within 5 business days after 18 July 2013, notwithstanding s 439A(2).