RE NEW EZIBUY LIMITED AND ORS [2023] NZHC 1015

RE NEW EZIBUY LIMITED AND ORS [2023] NZHC 1015

The Court granted the administrators' without-notice application because extending the convening period to 18 July 2023 and exempting administrators from personal liability for specified 'other payments' under leases is necessary and proportionate to enable continued trading under the moratorium, facilitate orderly...

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Citation
[2023] NZHC 1015
Parties
Company (subject): New Ezibuy Limited; Company (subject): Ezibuy Custodian Limited; Company (subject): Ezibuy Holdings Limited; Company (subject): Ezibuy Limited; Company (subject): Ezibuy Operations Limited; Company (subject): Last Stop Shop Limited; Company (subject): Sara Apparel Limited; Applicant (administrator): Damien Mark Hodgkinson; Applicant (administrator): Katherine Elizabeth Barnet
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 May 2023
Procedural Posture
Application Under Companies Act 1993 (part 15 a Voluntary Administration) / Interim Without Notice Application for Extension of Convening Period and Exemption From Administrator Liability
Outcome
Application granted
Legal Topics
Voluntary Administration, Extension of Convening Period S239 at, Administrator Liability S239 ADI and Exemption S239 ADK, Lease Make Good Liabilities, Without Notice Relief and Service to Creditors
Companies Law Insolvency Commercial Law Voluntary Administration Extension of Convening Period S239 at Administrator Liability S239 ADI and Exemption S239 ADK Lease Make Good Liabilities Without Notice Relief and Service to Creditors

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Parties

New Ezibuy Limited

Company (subject)

Ezibuy Custodian Limited

Company (subject)

Ezibuy Holdings Limited

Company (subject)

Ezibuy Limited

Company (subject)

Ezibuy Operations Limited

Company (subject)

Last Stop Shop Limited

Company (subject)

Sara Apparel Limited

Company (subject)

Damien Mark Hodgkinson

Applicant (administrator)

Katherine Elizabeth Barnet

Applicant (administrator)

Procedural Posture

Application Under Companies Act 1993 (part 15 a Voluntary Administration) / Interim Without Notice Application for Extension of Convening Period and Exemption From Administrator Liability

  1. 1 Whether the convening period under s239AT(3) should be extended to permit further investigation and sale processes
  2. 2 Whether the Court should exempt administrators from personal liability for 'other payments' (make-good and end-of-lease liabilities) under s239ADK
  3. 3 Whether orders may be made without notice and the appropriate method of giving subsequent notice to creditors

Ratio Decidendi

The Court granted the administrators' without-notice application because extending the convening period to 18 July 2023 and exempting administrators from personal liability for specified 'other payments' under leases is necessary and proportionate to enable continued trading under the moratorium, facilitate orderly realisation and potential sale or deed of arrangement proposals, and thereby maximise returns to creditors; the relief is consistent with the objects of Part 15A and comparable authority (including Re TM Lewin).

Court Disposition

Application granted

Orders

  • Applicants granted leave to bring the application without notice
  • Notice of the application and a copy of these orders to be served on all known creditors of the Ezibuy Group by email where an email address is available, or by post where no email is available, and by posting on Olvera Advisors Pty Ltd website