BRIDGMAN & BENNETT as administrators of NICHOLAS JERMYN LTD [2016] NZHC 1050

BRIDGMAN & BENNETT as administrators of NICHOLAS JERMYN LTD [2016] NZHC 1050

The application was granted because the administrators demonstrated genuine reasons for extending the statutory deadlines, the proposed extension was likely to produce a better outcome for creditors and employees, and there was no prejudice or impermissible attempt to extend the statutory moratorium.

Citation
[2016] NZHC 1050
Parties
Applicants: David Bridgman and Laramaree Bennett as administrators of Nicholas Jermyn Limited; Company (subject): Nicholas Jermyn Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 May 2016
Procedural Posture
Application Under Part 15 a of the Companies Act 1993 / Application for Extension of Time to Convene Watershed Meeting and to Give Notice of Termination of Employment
Outcome
Application granted
Legal Topics
Administration, Watershed Meeting, Extension of Statutory Time Periods, Termination of Employment Notices, Statutory Moratorium
Companies Law Insolvency Employment Law Administration Watershed Meeting Extension of Statutory Time Periods Termination of Employment Notices Statutory Moratorium

Case Brief

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Parties

David Bridgman and Laramaree Bennett as administrators of Nicholas Jermyn Limited

Applicants

Nicholas Jermyn Limited

Company (subject)

Procedural Posture

Application Under Part 15 a of the Companies Act 1993 / Application for Extension of Time to Convene Watershed Meeting and to Give Notice of Termination of Employment

Legal Issues

  1. 1 Whether the Court should extend the period for convening the watershed meeting under Part 15A of the Companies Act 1993
  2. 2 Whether the Court should extend the time for giving notice of termination of employment contracts under the Companies Act 1993
  3. 3 Whether granting an extension would improperly extend the statutory moratorium or cause prejudice to creditors or employees

Ratio Decidendi

The application was granted because the administrators demonstrated genuine reasons for extending the statutory deadlines, the proposed extension was likely to produce a better outcome for creditors and employees, and there was no prejudice or impermissible attempt to extend the statutory moratorium.

Court Disposition

Application granted

Orders

  • Extend the period to convene the watershed meeting of creditors to 6 September 2016
  • Extend the period within which administrators must give notice of termination of employment contracts to 6 September 2016