Nipps (Administrator) v Remagen Lend ADA Pty Ltd, in the matter of Adaman Resources Pty Ltd (Administrators Appointed) (No 2) [2021] FCA 577

Nipps (Administrator) v Remagen Lend ADA Pty Ltd, in the matter of Adaman Resources Pty Ltd (Administrators Appointed) (No 2) [2021] FCA 577

The extension was granted because the EOI campaign could not sensibly be completed within the existing convening period, the administration was complex, the Administrators' assessment of the required period was reasonable, a restructure or asset sale outside liquidation was likely to produce a better outcome for creditors and employees, an immediate report would not adequately inform creditors, there was no evidence of substantial prejudice to creditors, there was no creditor opposition apart from the Remagen Interests' contention that a longer period was preferable, and the two month extension was not excessive.

Jurisdiction
Australia
Judgment Date
28 May 2021
Procedural Posture
Interlocutory Application in Voluntary Administration Proceedings for Extension of Time to Convene Second Meetings of Creditors / Orders Made on 28 May 2021; Reasons for Judgment Published on 31 May 2021
Outcome
Application granted; convening period extended and ancillary orders made.
Legal Topics
['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'sale or Reconstruction Process' 'daisytek Order']
['corporations' 'corporate Insolvency'] ['voluntary Administration' 'extension of Convening Period' 'second Meeting of Creditors' 'sale or Reconstruction Process' 'daisytek Order']

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Procedural Posture

Interlocutory Application in Voluntary Administration Proceedings for Extension of Time to Convene Second Meetings of Creditors / Orders Made on 28 May 2021; Reasons for Judgment Published on 31 May 2021

Legal Issues

  1. 1 ['Whether the convening period for the second meetings of creditors of the second to eighth plaintiffs should be extended to midnight on 28 July 2021 under ss 439A(6) and 447A of the Corporations Act 2001 (Cth).' 'Whether Part 5.3A of the Corporations Act 2001 (Cth) should operate to permit the second meetings to be held during, or within five business days after, the extended convening period.' 'Whether notice of the second meetings could validly be given by the methods proposed by the Administrators.']

Ratio Decidendi

The extension was granted because the EOI campaign could not sensibly be completed within the existing convening period, the administration was complex, the Administrators' assessment of the required period was reasonable, a restructure or asset sale outside liquidation was likely to produce a better outcome for creditors and employees, an immediate report would not adequately inform creditors, there was no evidence of substantial prejudice to creditors, there was no creditor opposition apart from the Remagen Interests' contention that a longer period was preferable, and the two month extension was not excessive.

Court Disposition

Application granted; convening period extended and ancillary orders made.

Orders

  • ['Pursuant to s 439A(6) and s 447A(1) of the Corporations Act 2001 (Cth), the period within which the first plaintiffs must convene the second meetings of creditors in respect of each of the second to eighth plaintiffs under s 439A was extended to midnight on 28 July 2021.' 'Pursuant to s 447A(1), Part 5.3A of the...