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
Case Brief
Summary, issues, holding and outcome
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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
Legal Issues
- 1 Whether the watershed meeting should be adjourned under s239AT of the Companies Act 1993 and the convening period extended for the subsidiaries
- 2 Whether the without‑notice procedure under r7.46 High Court Rules was appropriate
- 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
Full Case Text
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