Albarran, in the matter of Bonza Aviation Pty Ltd (Administrators Appointed)

The case before the court involved Richard Albarran, Kathleen Vouris, Brent Kijurina, and Cameron Shaw, as joint and several administrators of Bonza Aviation Pty Ltd and two other related entities, seeking an extension of the convening period for a second meeting of creditors, as well as a Daisytek order to allow flexibility in the timing of this meeting. The administrators sought these orders to manage the administration of Bonza Aviation Pty Ltd, a company in financial distress, and to facilitate the sale of its assets, which included an Air Operator Certificate (AOC) that they considered the company's most valuable asset. The administrators were concerned about the potential cancellation of the AOC if the company entered liquidation and aimed to explore alternative options such as a deed of company arrangement (DOCA) to maximize returns for creditors.

The central legal issues the court needed to address were whether the convening period for the second meeting of creditors should be extended beyond the statutory deadline and whether a Daisytek order should be granted to allow flexibility in the timing of the meeting. The court considered the balance between the need for swift administration and the opportunity to explore potentially beneficial options for creditors, as highlighted in previous cases such as Farnsworth v About Life Pty Ltd.

The court determined that extending the convening period was appropriate to allow the administrators more time to consider and pursue options that might benefit creditors, such as a DOCA. It also granted the Daisytek order to provide flexibility in the timing of the second meeting of creditors, aligning with the principles established in In the matter of Daisytek Australia Pty Ltd. The court emphasised that the decision to grant these orders was based on the specific circumstances of the administration, including the significant value of the AOC and the potential benefits of exploring alternative options to liquidation.

In summary, the court extended the convening period for the second meeting of creditors of Bonza Aviation Pty Ltd, 777 Oz Holdco Pty Ltd, and Ops In A Box Pty Ltd up to and including 29 July 2024, and granted a Daisytek order allowing flexibility in the timing of the second meeting of creditors. The court also made orders regarding the substitution and joinder of parties, suppression and non-publication of certain documents, and the allocation of costs.