Adam Farnsworth was appointed Voluntary Administrator of the Company on 17 December 2018.
On 14 January 2019, on the Administrator's application, the Federal Court of Australia (“Court”) made orders including extending the convening period for the second meeting of creditors of the Company to 1 March 2019 (“Orders”).
In accordance with order 3 of the Orders, a copy of the circular advising creditors including a copy of the Orders is available to download from this website.
Background to Orders
At the Creditors Meeting convened for, and held on, 31 December 2018 (“First Meeting”), creditors considered the prospect of an application being made to extend the convening period for the second creditors meeting.
This was due to, inter alia, the intervening Christmas and New Year break since the Administrator's appointment making parties otherwise unavailable and to allow adequate time for:
• The investigation into the disposal of assets and the Company’s businesses and the application of funds received.
• The need to investigate, consider and assess the Double Bay Litigation; and
• The investigation and assessment of potential actions against the directors for breach of duty and or actions available under the Act, including insolvent trading.
The creditors present at the First Meeting expressed general support for such an extension.
At a meeting on the 11 January 2019, the Committee of Inspection resolved to support and endorse the Administrator to apply to Court for an extension to the period within which the Administrator must convene the second meeting of creditors of the Company under section 439A (5) of the Corporations Act.
On 14 January 2019 the Administrator approached the Court requesting that the convening period of the Administration be extended. The Court extended to convening period to 1 March 2019.
The Administrator believes the extension of the convening period is in the interests of creditors. The Court agreed.
Effect of Orders
The Orders generally provide that:
- The period within which the Administrator is to convene the second meeting of creditors of the Company is extended to 1 March 2019;
- The Administrator can hold the second meeting of creditors at any time before 1 March 2019, or within 5 business days after 1 March 2019;
- Notice of the Orders is to be given to creditors – which is done by this circular; and
- Liberty is granted:
- to the Administrator to apply for any further extension of the convening period – which would delay the holding of the second meeting if the Administrator exercised such liberty and orders were made; and
- to any creditor to vary or discharge the Orders – provided they can show sufficient interest and apply to the Court on three business days’ notice to me, as Administrator.