RE CBL CORPORATION LTD & ORS (ADMINISTRATORS APPOINTED) [2018] NZHC 2800

RE CBL CORPORATION LTD & ORS (ADMINISTRATORS APPOINTED) [2018] NZHC 2800

Given the complexity of the administration, the interdependence of the restructuring on the CBLI liquidation outcome, the practical difficulties of notifying a large and international creditor body, and the short one‑month extension sought, the court exercised its discretion to grant the without‑notice adjournment and extension as consistent with the statutory balancing exercise under the Companies Act and the High Court Rules.

Citation
[2018] NZHC 2800
Parties
Company (administrators Appointed): CBL Corporation Limited; Company (administrators Appointed): LBCHoldings New Zealand Limited; Company (administrators Appointed): LBC Holdings Americas Limited; Company (administrators Appointed): LBC Holdings UK Limited; Company (administrators Appointed): LBCHoldings Europe Limited; Company (administrators Appointed): LBCHoldings Australasia Limited; Company (administrators Appointed): LBC Treasury Company Limited; Company (administrators Appointed): Deposit Power Limited; Company (administrators Appointed): Southbritish Funding Limited; Company (administrators Appointed): CBL Corporate Services Limited; Applicant (administrator): Neale Jackson; Applicant (administrator): Brendon James Gibson
Court
High Court
Jurisdiction
New Zealand
Judgment Date
30 October 2018
Procedural Posture
Companies Act Administration Application (adjournment/extension) / Interlocutory Without‑notice Application to Adjourn Watershed Meeting and Extend Convening Period
Outcome
Application granted
Legal Topics
Administration, Watershed Meeting, Adjournment, Extension of Convening Period, Restructuring, Liquidation

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Parties

CBL Corporation Limited

Company (administrators Appointed)

LBCHoldings New Zealand Limited

Company (administrators Appointed)

LBC Holdings Americas Limited

Company (administrators Appointed)

LBC Holdings UK Limited

Company (administrators Appointed)

LBCHoldings Europe Limited

Company (administrators Appointed)

LBCHoldings Australasia Limited

Company (administrators Appointed)

LBC Treasury Company Limited

Company (administrators Appointed)

Deposit Power Limited

Company (administrators Appointed)

Southbritish Funding Limited

Company (administrators Appointed)

CBL Corporate Services Limited

Company (administrators Appointed)

Neale Jackson

Applicant (administrator)

Brendon James Gibson

Applicant (administrator)

Procedural Posture

Companies Act Administration Application (adjournment/extension) / Interlocutory Without‑notice Application to Adjourn Watershed Meeting and Extend Convening Period

  1. 1 Whether the watershed meeting should be adjourned under s239AT of the Companies Act 1993 and the convening period extended for the subsidiaries
  2. 2 Whether the without‑notice procedure under r7.46 High Court Rules was appropriate
  3. 3 How to balance the duty to proceed expeditiously with allowing time to pursue a restructuring that may maximise creditor returns

Ratio Decidendi

Given the complexity of the administration, the interdependence of the restructuring on the CBLI liquidation outcome, the practical difficulties of notifying a large and international creditor body, and the short one‑month extension sought, the court exercised its discretion to grant the without‑notice adjournment and extension as consistent with the statutory balancing exercise under the Companies Act and the High Court Rules.

Court Disposition

Application granted

Orders

  • Adjourn the watershed meeting to 18 December 2018
  • Extend the convening period in relation to the subsidiaries to 11 December 2018