RE FIBER FRESH FEEDS LTD (IN RECEIVERSHIP AND ADMINISTRATORS APPOINTED) [2019] NZHC 1565

RE FIBER FRESH FEEDS LTD (IN RECEIVERSHIP AND ADMINISTRATORS APPOINTED) [2019] NZHC 1565

The convening period was extended for three months because the administrators demonstrated that the extension was necessary and reasonable to allow an orderly sale process that preserved critical leases and moratorium protections, thereby maximizing creditor returns and causing no demonstrated prejudice to creditors, consistent with the objectives of s239A and the discretionary factors in Re Pumpkin Patch Ltd.

Citation
[2019] NZHC 1565
Parties
Applicant Administrator: Tony Leonard Maginness; Applicant Administrator: Jared Waiata Booth; Company (subject of Application): Fiber Fresh Feeds Ltd (In Receivership and Administrators Appointed); Receivers and Managers: Brendon Gibson and Natalie Burrett; Secured Creditor: Cooperative Rabobank UA
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 July 2019
Procedural Posture
Application Under Companies Act 1993 to Extend Convening Period for Watershed Meeting (s239 At) / Application for Extension Heard and Determined (interim Extension Made; Final Extension Granted)
Outcome
Application granted
Legal Topics
Voluntary Administration, Convening Period Extension, Moratorium on Creditor Actions, Sale as Going Concern, Deed of Company Arrangement
Company Law Insolvency Law Receivership Civil Procedure (high Court) Voluntary Administration Convening Period Extension Moratorium on Creditor Actions Sale as Going Concern +1 more

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Parties

Tony Leonard Maginness

Applicant Administrator

Jared Waiata Booth

Applicant Administrator

Fiber Fresh Feeds Ltd (In Receivership and Administrators Appointed)

Company (subject of Application)

Brendon Gibson and Natalie Burrett

Receivers and Managers

Cooperative Rabobank UA

Secured Creditor

Procedural Posture

Application Under Companies Act 1993 to Extend Convening Period for Watershed Meeting (s239 At) / Application for Extension Heard and Determined (interim Extension Made; Final Extension Granted)

Legal Issues

  1. 1 Whether the convening period for the watershed meeting should be extended under s239AT of the Companies Act 1993
  2. 2 Whether it is appropriate to maintain the administration moratorium while receivers are in control
  3. 3 Whether creditors will be prejudiced by an extension

Ratio Decidendi

The convening period was extended for three months because the administrators demonstrated that the extension was necessary and reasonable to allow an orderly sale process that preserved critical leases and moratorium protections, thereby maximizing creditor returns and causing no demonstrated prejudice to creditors, consistent with the objectives of s239A and the discretionary factors in Re Pumpkin Patch Ltd.

Court Disposition

Application granted

Orders

  • Leave granted to commence proceedings without notice
  • Convening period for the watershed meeting extended to 28 September 2019 pursuant to s239AT(3) Companies Act 1993