2. May 2011 08:50
This case concerned an application by Administrators for an extension of the period within which they were to convene the second meeting of creditors pursuant to s 439A of the Corporations Act 2001. The company was a subsidiary of an Austrian based group of entities which had been declared insolvent by Austrian courts: . The company’s assets consisted of substantial construction project contracts, in varying stages of completion with such projects providing employment to approximately 160 people: [4-6]. Given the size and complexity of the company, the Administrators had not had sufficient opportunity to investigate the affairs of the company: .
The Administrators sought to avert creditor concerns of any extension by undertaking to commence the process of reviewing and clarifying claims of employees under the GEERS scheme and undertaking to expedite adjudication of claims to enable claims to be made with trade insurers: [9-10]. The Administrators wished to continue to exercise rights under s 443B of the Corporations Act 2001 to ensure works on construction projects could continue: . The Administrators were of the opinion that by focusing on existing parts of the company’s business, a better outcome for creditor may be able to be achieved.
The court was satisfied that it was appropriate to extend the convening period.
Relevant paragraphs of Ford