In the matter of Vical NSW Pty Limited (Administrators Appointed) ACN 065 390 016 and Arsonello Pty Limited (Administrators Appointed) ACN 080 140 843 [2015] NSWSC 2022

In the matter of Vical NSW Pty Limited (Administrators Appointed) ACN 065 390 016 and Arsonello Pty Limited (Administrators Appointed) ACN 080 140 843 [2015] NSWSC 2022

It is in the interests of creditors and employees for the convening period to be further extended to 27 July 2015 because a going concern sale is realistically achievable only if the administration continues and the statutory moratorium is maintained; alternatives such as liquidation would not improve creditor returns or employment outcomes.

Jurisdiction
Australia
Judgment Date
19 March 2015
Procedural Posture
Voluntary Administration Application / Application for Extension of Convening Period
Outcome
Application allowed; extension of convening period granted.
Legal Topics
['voluntary Administration' 'convening Period Extension' 'sale of Business as Going Concern' "creditors' Meetings"]
['corporations Law'] ['voluntary Administration' 'convening Period Extension' 'sale of Business as Going Concern' "creditors' Meetings"]

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Procedural Posture

Voluntary Administration Application / Application for Extension of Convening Period

Legal Issues

  1. 1 ["Whether the convening period for a creditors' meeting should be further extended to facilitate a sale of pharmacy businesses as a going concern during administration" 'Whether extending the administration serves the interests of creditors, employees, and secured creditors']

Ratio Decidendi

It is in the interests of creditors and employees for the convening period to be further extended to 27 July 2015 because a going concern sale is realistically achievable only if the administration continues and the statutory moratorium is maintained; alternatives such as liquidation would not improve creditor returns or employment outcomes.

Court Disposition

Application allowed; extension of convening period granted.

Orders

  • ['The period within which the plaintiffs must convene the meeting of creditors is extended up to and including 27 July 2015.' 'Plaintiffs to serve notice of these orders on lessor and all known creditors.' 'Leave reserved to any person with sufficient interest to apply to set aside or vary the order.' 'Orders to be...