Application by administrators to extend convening period for second creditors' meeting
Whether modification in the interests of creditors as a whole
Quick Take
1When considering an extension of the convening period for a second creditors' meeting under s 439A(6) of the Corporations Act 2001 (Cth), the court must balance the expectation of a speedy administration against the need to ensure sensible and constructive options directed at maximising returns for creditors are not foreclosed by premature conclusion of the administration.
2Creditors' interests can be prejudiced not only by delay but also by convening meetings prematurely where the administrator has been unable to obtain adequate information to enable creditors to make an informed decision.
3The court will generally exercise its discretion to extend the convening period where established categories such as complexity of the administration are raised, there is no evidence of material prejudice to those affected, and the administrator's time estimate has a reasonable basis.
