New Zealand Case Law: Decisions & Judgments

Topic

Watershed meeting

Legal area

Court

16 Dec 2022

RE GO TO COLLECTION LIMITED [2022] NZHC 3471

Citation

[2022] NZHC 3471
Court

High Court

A short one‑month extension of the convening period and corresponding extension of the s239Y termination notice period was justified because it advanced the statutory objects of voluntary administration by preserving prospects of sale as going concerns and a potential DOCA, avoided likely prejudice from holiday unavailability, the company could meet its obligations during the period, the extension was limited in duration and unlikely to prejudice creditors, and dispensing with personal service was proportionate given notification directions.
21 Oct 2022

RE RUAPEHU ALPINE LIFTS LTD [2022] NZHC 2738

Citation

[2022] NZHC 2738
Court

High Court

Given the company's complexity, number of stakeholders and creditors, and the need to maximise the prospects of selling the business as a going concern while avoiding prejudice to employees and creditors, the Court exercised its s239AT(3) and s239Y(4) powers to grant a six-month extension to 9 May 2023, permitted electronic service (with retrospective effect for the first meeting), and ordered that accruing wages be administration expenses; the urgency justified proceeding without notice.
16 Dec 2021

PLATFORM HOMES LTD v GRANT [2021] NZHC 3492

Citation

[2021] NZHC 3492
Court

High Court

The Court dismissed the application as moot because there was no live, tangible controversy: the applicants' votes would not have changed the outcome, no practical effect on their rights, no request for consequential orders under s239AMB, and the fact-specific timing issue (five days) was unsuitable for determination in a moot case.
2 Sept 2021

BARTLETTS CREEK VINEYARD LTD PARTNERSHIP v MAGINNESS and BOOTH (as administrators of SACRED HILL MARLBOROUGH VINEYARDS LTD) [2021] NZHC 2295

Citation

[2021] NZHC 2295
Court

High Court

The Court had jurisdiction to reconsider the without‑notice extension order because leave was reserved to creditors to apply to vary or set it aside; the administrators presented sufficient grounds (urgent risk to sale as going concern and prejudice from delay in serving many creditors) to justify a without‑notice application under High Court Rules r7.23/r7.46, although the supporting materials should have better identified and explained the specific r7.23 grounds and the reason for the late filing; accordingly Bartletts Creek's application to set aside or challenge the without‑notice procedu…
8 Oct 2019

RE KUMFS GROUP LTD [2019] NZHC 2552

Citation

[2019] NZHC 2552
Court

High Court

The court granted the without‑notice application and extended both the convening period and the s239Y termination notice period because the administrators demonstrated that additional time (108 days to 31 January 2020) was necessary to investigate sale and restructuring options and prepare an informed report to creditors, and the extensions would not unduly prejudice creditors while remaining consistent with the purpose of voluntary administration.
29 May 2019

Re an application re Fiber Fresh Feeds Limited (In Receivership) [2019] NZHC 1237

Citation

[2019] NZHC 1237
Court

High Court

The Court granted leave under s 280 because the applicants, despite a continuing business relationship with Rabobank, had not acted for the Company or advised Rabobank about the Company or its security, demonstrated competence and relevant sector experience, and adequate protections existed (urgent without‑notice relief justified, mandatory watershed meeting, reserved leave to creditors and specified notification arrangements) to mitigate any risk to independence; accordingly it was appropriate to permit their appointment as administrators and to cover potential subsequent appointment as liqu…
8 Feb 2019

INDUSTRIAL AND COMMERCIAL BANK OF CHINA (NZ) LTD v BANK OF CHINA (NZ) LTD [2019] NZHC 110

Citation

[2019] NZHC 110
Court

High Court

The court exercised its discretion under s 239ADO to adjourn the watershed meeting to a date no later than 10 working days after determination of the liquidation application because doing so best balanced the prospects of a creditor‑supported restructuring against protecting creditors' positions (including the significance of the commencement date for the restricted period), and was supported by the Administrators and not opposed by other served creditors.
18 Dec 2018

RE HALIFAX NEW ZEALAND LIMITED [2018] NZHC 3390

Citation

[2018] NZHC 3390
Court

High Court

The Court extended the convening period to 29 March 2019 because the administrators demonstrated that the company's business and its connection with the parent were complex, there are some 3,800 investor creditors and potential statutory trust issues, the administrators require further time to investigate and formulate proposals, the creditors' committee supported the extension, the Australian parent has an aligned extension, and there was no material prejudice to creditors, employees or suppliers and no objection from the FMA.
30 Oct 2018

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

Citation

[2018] NZHC 2800
Court

High Court

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.
13 Jun 2018

JACKSON & OR [2018] NZHC 1400

Citation

[2018] NZHC 1400
Court

High Court

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.