Hughes, in the matter of Parkhurst Farms Pty Ltd (Administrators Appointed) [2017] FCA 1596

REEVES J: 1 The plaintiffs are the Administrators appointed to two companies, Parkhurst Farms Pty Ltd and Yarra Station Pty Ltd. They were appointed by resolutions passed by the companies' board of directors on 13 November 2017. Suncorp Bank is the largest creditor of the companies. It holds security over both the Little River farm and the Yarra land farms owned by the companies. The convening period under s 439A(5) of the Corporations Act 2001 (Cth) (the Act) for the meeting of creditors is due to expire next Monday, 11 December 2017. 2 In this application, the plaintiffs have applied to extend that convening period by three months, that is, to 12 March 2018. 3 In Re Riviera Group Pty Ltd (admins apptd) (recs and mgrs apptd) ACN 102 298 279 (2009) 72 ACSR 352; [2009] NSWSC 585 at [13]-[14], Austin J discussed the circumstances in which it was appropriate to extend the convening period and identified 11 categories of cases where that may appropriately occur. They included the following: (a) lack of access to corporate financial records; and (b) the time needed for a thorough assessment of a proposed deed of company of arrangement. 4 In this application, Mr Ziebell, on behalf of the Administrators, has advanced three broad reasons why the convening period should be extended. They are: first, that Mr and Mrs Kyriazis, the directors of the companies, intend to put forward a proposed deed of company arrangement which the Administrators wish to assess; secondly, there are various complexities in the administration including difficulties obtaining the companies' accounts and other records from their accountants, issues associated with the ownership of the assets of the companies, the existence of Family Law Court proceedings between Mr and Mrs Kyriazis, and the intervening Christmas/New Year period; and thirdly, Mr Ziebell has submitted that no prejudice will be suffered by any relevant party. In particular, he has pointed out that Suncorp has consented to the extension and Mr and Mrs Kyriazis support the extension. 5 I should note that Mr Ziebell advised that the Australian Securities and Investments Commission (ASIC) had been notified and did not oppose the application. 6 I am satisfied on the materials - and based on the reasons outlined by Mr Ziebell - that it is appropriate to grant the extension of time under s 493AA(6) of the Act extending the convening period for the meeting of creditors from 11 December 2017 to 12 March 2018. In addition to this extension of time order, the Administrators have sought various orders under s 447A of the Act in relation to the companies including orders dealing with when the creditors meeting may be held, the manner of giving notices in relation to that meeting and other issues, a requirement to give notice to the creditors and ASIC of these orders and orders relating to leave to apply. In all the circumstances, I am satisfied that it is appropriate to make those orders. 7 Accordingly, I make the eight orders set out in the draft orders put forward by the Administrators noting that proposed Order 3(d) should be amended to change s 439A(4) of the Act to r 75-225(3) of the Insolvency Practice Rules (Corporations) 2016 (Cth). I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Reeves.