RE CBL CORPORATION LTD & ORS (ADMINISTRATORS APPOINTED) [2018] NZHC 1998

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

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 2
Sign in to unlock

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)

  1. 1 Whether the Court should adjourn the watershed meeting of CBL under s239AZ(2) beyond 30 days
  2. 2 Whether the Court should extend the convening period for subsidiary watershed meetings under s239AT(3)
  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