RE CBL CORPORATION LTD & ORS (ADMINISTRATORS APPOINTED) [2018] NZHC 1998
The Court granted the adjournment and convening period extension because, applying the Part 15A objectives and relevant statutory powers, the administrators demonstrated that the group's complexity, ongoing asset realisation, potential restructuring and pending CBLI-related proceedings justified a six-month adjournment to maximise prospects of a better return to creditors; there was no demonstrated prejudice and protection was provided by public advertisement and reservation of leave to apply to vary or set aside the orders.
- Citation
- [2018] NZHC 1998
- Parties
- Company: CBL Corporation Limited; Company: LBC Holdings New Zealand Limited; Company: LBC Holdings Americas Limited; Company: LBC Holdings UK Limited; Company: LBC Holdings Europe Limited; Company: LBC Holdings Australasia Limited; Company: LBC Treasury Company Limited; Company: Deposit Power Limited; Company: SouthBritish Funding Limited; Company: CBL Corporate Services Limited; Administrator/applicant: Neale Jackson; Administrator/applicant: Brendon James Gibson
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 7 August 2018
- Procedural Posture
- Application Under Part 19 High Court Rules and Companies Act 1993 (administration Matters) / Interlocutory (without Notice)
- Outcome
- Application granted
- Legal Topics
- Administration, Adjournment of Watershed Meeting, Extension of Convening Period, Asset Realisation, Restructuring
Case Brief
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Parties
CBL Corporation Limited
Company
LBC Holdings New Zealand Limited
Company
LBC Holdings Americas Limited
Company
LBC Holdings UK Limited
Company
LBC Holdings Europe Limited
Company
LBC Holdings Australasia Limited
Company
LBC Treasury Company Limited
Company
Deposit Power Limited
Company
SouthBritish Funding Limited
Company
CBL Corporate Services Limited
Company
Neale Jackson
Administrator/applicant
Brendon James Gibson
Administrator/applicant
Procedural Posture
Application Under Part 19 High Court Rules and Companies Act 1993 (administration Matters) / Interlocutory (without Notice)
Legal Issues
- 1 Whether the Court should adjourn the watershed meeting of CBL under s239AZ(2) beyond 30 days
- 2 Whether the Court should extend the convening period for subsidiary watershed meetings under s239AT(3)
- 3 Whether the adjournment/extension is consistent with Part 15A objectives and whether creditors will be prejudiced
Ratio Decidendi
The Court granted the adjournment and convening period extension because, applying the Part 15A objectives and relevant statutory powers, the administrators demonstrated that the group's complexity, ongoing asset realisation, potential restructuring and pending CBLI-related proceedings justified a six-month adjournment to maximise prospects of a better return to creditors; there was no demonstrated prejudice and protection was provided by public advertisement and reservation of leave to apply to vary or set aside the orders.
Court Disposition
Application granted
Orders
- Adjourn the watershed meeting of CBL Corporation Limited to 17 November 2018
- Extend the convening period for the watershed meetings of the listed subsidiaries to 17 November 2018
Full Case Text
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