Brereton (Administrator), in the matter of Whyalla Ports Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2025] FCA 774 (4 July 2025)

1. With respect to the ancillary orders sought, s 447A(1) of the Act provides that "[t]he Court may make such order as it thinks appropriate about how this Part is to operate in relation to a particular company". This includes empowering the court to make what is known as a "Daisytek" order, which gives the Administrators the ability to hold the second meeting of creditors at any time during, or within 5 business days after the end of, the convening period as extended by the orders of the court pursuant to s 439A(6) of the Act. Such orders are "sensible and now almost routine". See Re LED Builders Pty Ltd (Administrators Appointed) [2008] NSWSC 633 at [2] (Austin J).

1. I agree. In order to act in the best interests of creditors, administrators must be given sufficient time to investigate the affairs of an insolvent company and provide sensible information and advice to its creditors.
2. In Re North Queensland Heavy Haulage Services Pty Ltd (Administrators Appointed) [2017] FCA 635 at [20], Markovic J found that a relevant factor when considering an extension application is:

1. More recently, in Re Sara Lee Holdings Pty Ltd (Administrators Appointed) [2023] FCA 1408 at [18], Halley J referred to the expectation that creditors be provided with information at a second meeting that "allows them to exercise their decision in as an informed manner as possible".
2. The extension sought is clearly directed at ensuring that the Administrators can provide sufficient information to the creditors so as to enable the creditors to make an informed decision at the second meeting. The utility of such an extension is particularly clear in a case such as the present, where Administrators must still complete a significant amount of complex work before they can make informed recommendations as to the options available to the creditors of the Company.

1. Mr Hynes conceded that, as a result of OneSteel's termination of the Lease (and the South Australian parliament's enactment of legislation rendering the Lease void ab initio), the Company was no longer engaged in trade. However, he submitted that this circumstance had no bearing on the Company's extension application, because the extension could still advance creditors' interests by potentially securing a better return for them than an immediate liquidation otherwise would.
2. I accept Mr Hynes' submission. The object of Part 5.3A of the Act is to provide for an insolvent company to be administered in a way that "maximises the chances of the company, or as much as possible of its business, continuing in existence" or, where that is not possible, "results in a better return for the company's creditors and members than would result from an immediate winding up of the company" (see s 435A of the Act). The fact that the Company is dormant (and may have little to no hope of having its business resurrected) does not mean that an extension would serve no purpose.
3. The proposition that the continuation of a business is not a necessary condition for the grant of an extension also finds support in the case law. In Re Riviera Group Pty Ltd (Administrators Appointed) (Receivers and Managers Appointed) [2009] NSWSC 585 at [13], Austin J set out a number of reasons that courts have previously given for granting an extension, including "lack of access to corporate financial records", "the time needed for thorough assessment of a proposal for a deed of company arrangement", "complex corporate group structure and intercompany loans", "complex prospects of recovery proceedings" and "more generally, that additional time is likely to enhance the return for unsecured creditors". All of these reasons are relevant in the present case, and the final three reasons were also explicitly mentioned by Nettle and Gordon JJ in Mighty River (at 512 [73]).
4. It is therefore inaccurate to say, as Mr Zwier did in the course of his submissions, that "[t]he object is to preserve ongoing businesses, maximise the chance of the business remaining in existence". The object of Part 5.3A is not solely to preserve ongoing business operations. Section 435A of the Act is clearly also directed towards obtaining better returns for creditors than would otherwise result from an immediate liquidation.

1. In the alternative, Mr Zwier also contended that any extension granted "should be short, it should be sharp, it should be precise, to avoid the kind of delays and fudginess that occurs when you give administrators too much time, in the circumstances of a company with no ongoing operations".
2. Mr Hynes contended that there would be little to no prejudice to creditors resulting from the proposed extension, because "three months, in the grand scheme of things, is not lengthy" and is "a modest extension".
3. While it is correct to highlight the need for voluntary administrations to proceed expeditiously, that imperative should not be prioritised at the expense of maximising creditors' returns. See Re WBHO at [16]. As McKerracher J said in Re The Griffin Coal Mining Company Pty Ltd (Administrators Appointed) [2010] FCA 30 at [16], "[i]n order for the administrators to carry out their function properly, it is necessary that they should have should have sufficient time to investigate the affairs of the companies under administration and to provide sensible information and advice to creditors...".
4. And as Mr Hynes pointed out at the hearing, Mr Prasad has deposed to the fact that if he is in a position to convene a meeting any earlier than 7 October 2025, he will do so.
5. I am therefore satisfied that granting a three-month extension in the present case strikes an appropriate balance between ensuring that the Company's administration proceeds in a speedy manner and providing the Administrators with sufficient opportunity to make informed recommendations to, and obtain better returns for, the Company's creditors. See Re Diamond Press at [10] (Barrett J); Re MG Gold at [2] (Jackman J).

(2018) 265 CLR 480