BENNETTS BOOKSTORES LTD [2019] NZHC 1658

BENNETTS BOOKSTORES LTD [2019] NZHC 1658

The extension was granted because the administrator demonstrated a realistic prospect of selling a viable business, creditor support, benefit to creditors and employees, preservation of leases, and the extension sought was modest; the court also found the without-notice procedure and the timing of the watershed meeting within five business days of the extended convening period lawful.

Citation
[2019] NZHC 1658
Parties
Company (administrator Appointed): Bennetts Bookstores Ltd; Applicant (administrator): Bryan Edward Williams
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 July 2019
Procedural Posture
Administration Under Part 15 a of the Companies Act 1993 / Application for Extension of Convening Period Prior to Watershed Meeting
Outcome
Application granted
Legal Topics
Administration, Extension of Convening Period, Watershed Meeting Timing, Sale of Business
Companies Law Insolvency Civil Procedure Administration Extension of Convening Period Watershed Meeting Timing Sale of Business

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 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Bennetts Bookstores Ltd

Company (administrator Appointed)

Bryan Edward Williams

Applicant (administrator)

Procedural Posture

Administration Under Part 15 a of the Companies Act 1993 / Application for Extension of Convening Period Prior to Watershed Meeting

Legal Issues

  1. 1 Whether the convening period under Part 15A should be extended
  2. 2 Whether the application could be decided without notice
  3. 3 Whether the watershed meeting may be held within five business days after the extended convening period despite s 239ADO(2)

Ratio Decidendi

The extension was granted because the administrator demonstrated a realistic prospect of selling a viable business, creditor support, benefit to creditors and employees, preservation of leases, and the extension sought was modest; the court also found the without-notice procedure and the timing of the watershed meeting within five business days of the extended convening period lawful.

Court Disposition

Application granted

Orders

  • Extend the convening period to 30 August 2019 (30 working days)
  • Watershed meeting may be held at any time up to or within five business days after the end of the extended convening period