SECTION 447A(1) CORPORATIONS ACT RELIEF FOR ADMINISTRATORS
MPH recently acted for the joint and several voluntary administrators of a listed company and two wholly owned subsidiaries, all under voluntary administration, seeking urgent relief to extend the maximum permitted 45-business day adjournment of the second meeting of creditors for each company pursuant to the section 447A(1) of the Corporations Act 2001 (Cth).
The administrators sought an extension of the adjournment date to 30 April 2024 in order to conclude a potential recapitalisation transaction with a public company, given that no viable DOCA had been proposed and any recapitalisation would provide a better return to creditors than an immediate liquidation.
In granting the relief sought, the Supreme Court was satisfied that the extension, although at the upper limit, was reasonable having regard to the test that an appropriate balance must be struck between the expectation that an administration will be relativity speedy and recognition that undue speed should not be allowed to prejudice sensible and constructive actions directed towards maximising the return to creditors.
The published reasons for the decision can be found here.