Smith, Michael John Morris In the matter of Brian Rochford Ltd (administrator appointed) [1998] FCA 1713

Smith, Michael John Morris In the matter of Brian Rochford Ltd (administrator appointed) [1998] FCA 1713

The Court was satisfied that section 447A empowered it to make an order modifying the operation of section 439B(2) for Brian Rochford Limited, and that it was appropriate to do so because the Company's business was complex, further negotiations for a going concern sale were in hand, and an extension would assist the administrator to preserve value for creditors by utilising the coming season and realising substantial stock.

Jurisdiction
Australia
Judgment Date
22 September 1998
Procedural Posture
Application Pursuant to Section 447 a of the Corporations Law Concerning Operation of Part 5.3 a in Relation to a Company Under Administration / Ex Tempore Reasons for Judgment and Orders
Outcome
Application granted; section 439B(2) of the Corporations Law ordered to operate in relation to Brian Rochford Limited as if 150 days were substituted for 60 days for the meeting convened on 27 July 1998.
Legal Topics
['voluntary Administration' 'second Meeting of Creditors' "adjournment of Creditors' Meeting" 'extension of Time' 'section 447 a Orders']
['corporations Law' 'insolvency Law'] ['voluntary Administration' 'second Meeting of Creditors' "adjournment of Creditors' Meeting" 'extension of Time' 'section 447 a Orders']

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Procedural Posture

Application Pursuant to Section 447 a of the Corporations Law Concerning Operation of Part 5.3 a in Relation to a Company Under Administration / Ex Tempore Reasons for Judgment and Orders

Legal Issues

  1. 1 ['Whether the Court should make an order under section 447A of the Corporations Law so that section 439B(2) operates in relation to Brian Rochford Limited as if 150 days were substituted for 60 days.' 'Whether the adjourned second meeting of creditors could be adjourned beyond the period specified in section 439B(2) of the Corporations Law.']

Ratio Decidendi

The Court was satisfied that section 447A empowered it to make an order modifying the operation of section 439B(2) for Brian Rochford Limited, and that it was appropriate to do so because the Company's business was complex, further negotiations for a going concern sale were in hand, and an extension would assist the administrator to preserve value for creditors by utilising the coming season and realising substantial stock.

Court Disposition

Application granted; section 439B(2) of the Corporations Law ordered to operate in relation to Brian Rochford Limited as if 150 days were substituted for 60 days for the meeting convened on 27 July 1998.

Orders

  • ['Pursuant to section 447A of the Corporations Law that section 439B(2) of the Corporations Law is to operate in relation to Brian Rochford Limited in respect of the meeting convened on 27 July 1998 as if the period of 150 days is substituted for the period of 60 days.' 'Leave be reserved to any person claiming to...