CBCH NEW ZEALAND LIMITED ex parte STRAWBRIDGE, MARSDEN and TRACY [2020] NZHC 1146

CBCH NEW ZEALAND LIMITED ex parte STRAWBRIDGE, MARSDEN and TRACY [2020] NZHC 1146

The court has statutory power under ss 239AT and 239ADO, and the COVID-19 emergency provisions reinforce discretion to extend time; given COVID-19 disruption to sale processes, the need to coordinate with Australian administrations and the prospect of better returns to creditors via a mothballing-and-sale strategy, the court should exercise its discretion to extend the convening period to 2 September 2020.

Citation
[2020] NZHC 1146
Parties
Company (subject): CBCH New Zealand Limited; Administrator/applicant: Vaughan Neil Strawbridge; Administrator/applicant: Sam Andrew Marsden; Administrator/applicant: Jason Mark Tracy
Court
High Court
Jurisdiction
New Zealand
Judgment Date
28 May 2020
Procedural Posture
Companies Act Administration Proceeding (part 15 A) / Application for Further Extension of Convening Period (interlocutory)
Outcome
Application granted
Legal Topics
Administration, Extension of Convening Period, Court Discretion, Coordination With Foreign Administration, COVID 19 Emergency Measures, Creditors' Interests
Companies Law Insolvency Law Civil Procedure Statutory Interpretation Commercial Law Administration Extension of Convening Period Court Discretion +3 more

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Parties

CBCH New Zealand Limited

Company (subject)

Vaughan Neil Strawbridge

Administrator/applicant

Sam Andrew Marsden

Administrator/applicant

Jason Mark Tracy

Administrator/applicant

Procedural Posture

Companies Act Administration Proceeding (part 15 A) / Application for Further Extension of Convening Period (interlocutory)

Legal Issues

  1. 1 Whether the court has power to grant a further extension of the convening period for a watershed meeting under the Companies Act
  2. 2 Whether the court should exercise its discretion to grant a further extension in the circumstances of COVID-19
  3. 3 Whether the COVID-19 Response (Further Management Measures) Legislation Act 2020 affects the court's power to extend time

Ratio Decidendi

The court has statutory power under ss 239AT and 239ADO, and the COVID-19 emergency provisions reinforce discretion to extend time; given COVID-19 disruption to sale processes, the need to coordinate with Australian administrations and the prospect of better returns to creditors via a mothballing-and-sale strategy, the court should exercise its discretion to extend the convening period to 2 September 2020.

Court Disposition

Application granted

Orders

  • Time for convening the watershed meeting extended to 2 September 2020 with the watershed meeting to be held within five working days after that date
  • Applicants to give notice of these orders to all known creditors