WGL RETAIL HOLDINGS LTD & ORS AND S J SHERMAN & ORS HC AK CIV-2011-404-001117
Given the scale and complexity of the New Zealand companies, cross‑jurisdictional coordination with the Australian administration, the need to conduct a realistic sale process as a going concern and creditors' lack of opposition (including a secured creditor supporting extension), the convening period under...
Source-derived case information.
- Citation
- openlaw-be1a6d32_e0a2_4bff_9a6f_26c6d7de95e4.pdf
- Parties
- Company in Administration: WGL Retail Holdings Ltd; Company in Administration: Whitcoulls Group Ltd; Company in Administration: Calendar Club New Zealand Ltd; Company in Administration: Borders New Zealand Ltd; Company in Administration: REDgroup Online Ltd; Applicant/administrator: Steven John Sherman; Applicant/administrator: John Melluish; Applicant/administrator: Ryan Reginald Eagle
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 16 March 2011
- Procedural Posture
- Application for Extension of Convening Period and Extension of Employee Notice Periods Under Part 15 a Companies Act 1993 / Application on the Papers (interim Orders Sought)
- Outcome
- Application granted in part; convening period and employee notice period extended to 17 September 2011 with conditions
- Legal Topics
- Administration, Watershed Meeting, Extension of Convening Period S239 at, Administrators' Notice of Termination S239 Y, Sale as Going Concern, Creditors' Rights, Lease Issues, Retention of Title
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Parties
WGL Retail Holdings Ltd
Company in Administration
Whitcoulls Group Ltd
Company in Administration
Calendar Club New Zealand Ltd
Company in Administration
Borders New Zealand Ltd
Company in Administration
REDgroup Online Ltd
Company in Administration
Steven John Sherman
Applicant/administrator
John Melluish
Applicant/administrator
Ryan Reginald Eagle
Applicant/administrator
Procedural Posture
Application for Extension of Convening Period and Extension of Employee Notice Periods Under Part 15 a Companies Act 1993 / Application on the Papers (interim Orders Sought)
Legal Issues
- 1 Whether the convening period for watershed meetings under s239AT(2) should be extended under s239AT(3)
- 2 Whether the period for administrators to give termination of employment notice under s239Y(3) should be extended under s239Y(4)
- 3 Balance between strict statutory time limits and allowing administrators sufficient time to investigate and effect a going concern sale
Ratio Decidendi
Given the scale and complexity of the New Zealand companies, cross‑jurisdictional coordination with the Australian administration, the need to conduct a realistic sale process as a going concern and creditors' lack of opposition (including a secured creditor supporting extension), the convening period under s239AT(2) is extended to 17 September 2011 and the s239Y notice period is extended to the same date to enable proper administration and better creditor returns.
Court Disposition
Application granted in part; convening period and employee notice period extended to 17 September 2011 with conditions
Orders
- For each of WGL Retail Holdings Ltd, Whitcoulls Group Ltd, Calendar Club New Zealand Ltd, Borders New Zealand Ltd and REDgroup Online Ltd the convening period under s239AT(2) is extended up to and including 17 September 2011
- Under s239ADO Part 15A shall have effect as if the meeting required by s239AV may be held at any time during the period up to or within five business days after the end of the convening period as extended above
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