JACKSON & OR [2018] NZHC 1400

JACKSON & OR [2018] NZHC 1400

The court granted the adjournment because the administrators demonstrated a real prospect that the detailed restructuring proposal could materially benefit creditors and shareholders, that proper consideration required time for consultation and a supplementary administrators' report, and there was no apparent prejudice to interested parties such as to refuse the extension; leave was preserved for any interested person to seek variation or set aside.

Citation
[2018] NZHC 1400
Parties
Applicant (administrator): Neale Jackson; Applicant (administrator): Brendon Gibson; Subject Company (administrator Appointed): CBL Corporation Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
13 June 2018
Procedural Posture
Application Under S 239 AZ Companies Act 1993 for Adjournment of Watershed Meeting / Interlocutory – Hearing on the Papers; Application for Order to Adjourn Watershed Meeting
Outcome
Application granted
Legal Topics
Administration, Watershed Meeting, Adjournment, Deed of Company Arrangement, Restructuring Proposal
Company Law Insolvency Administration Watershed Meeting Adjournment Deed of Company Arrangement Restructuring Proposal

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Parties

Neale Jackson

Applicant (administrator)

Brendon Gibson

Applicant (administrator)

CBL Corporation Limited

Subject Company (administrator Appointed)

Procedural Posture

Application Under S 239 AZ Companies Act 1993 for Adjournment of Watershed Meeting / Interlocutory – Hearing on the Papers; Application for Order to Adjourn Watershed Meeting

Legal Issues

  1. 1 Whether the court should order an adjournment of the watershed meeting beyond the 30 working day limit under s 239AZ(2)
  2. 2 Balancing the statutory expectation of prompt administration against the need to allow sufficient time to consider a complex restructuring proposal
  3. 3 Whether the proposed adjournment would prejudice creditors or other stakeholders

Ratio Decidendi

The court granted the adjournment because the administrators demonstrated a real prospect that the detailed restructuring proposal could materially benefit creditors and shareholders, that proper consideration required time for consultation and a supplementary administrators' report, and there was no apparent prejudice to interested parties such as to refuse the extension; leave was preserved for any interested person to seek variation or set aside.

Court Disposition

Application granted

Orders

  • Order extending adjournment of the watershed meeting to 17 August 2018
  • Orders made in accordance with paragraph 1(a)–(f) of the interlocutory application dated 12 June 2018