Clubb (administrator), in the matter of Town Tavern Blacktown Pty Limited (administrators appointed) (receivers and managers appointed)

The case involves Town Tavern Blacktown Pty Limited, which operates a licensed hotel business in Western Sydney, and its associated entities within a corporate group. The administrators, appointed as receivers and managers, applied to the court under section 439A of the Corporations Act 2001 for an extension of the convening period for the second meeting of creditors by six months, along with ancillary orders. The administrators sought the extension to facilitate an orderly sales campaign, preserve the group's ability to structure a sale, and retain assets necessary for the business to continue operating, thereby achieving the best possible outcome from a sale.

The legal issues before the court were whether the extension of the convening period was warranted under the circumstances, and if so, what ancillary orders should be made. The court considered the intertwined nature of the group's assets, the potential for a greater return from a sale as a going concern, and the absence of objections from creditors. The court also examined the typical ancillary orders requested in such applications, which provide flexibility in convening the meeting, efficient means of notification to creditors, and the ability for interested parties to challenge the orders promptly.

The court granted the application for the extension and the ancillary orders. It reasoned that the extension would allow the administrators to execute the proposed sale campaign effectively, maximising the return to creditors and avoiding value destruction that would result from immediate liquidation. The court was also satisfied that the ancillary orders were appropriate to facilitate the administration process and ensure transparency and accessibility for creditors. The orders included extending the convening period, allowing flexibility in convening the second meeting, modifying the notice requirements, and granting liberty to apply to vary or discharge the orders.

The final orders extended the convening period for the second meeting of creditors to 9 October 2024, allowed the meeting to be convened at any time during this extended period, modified the notice requirements to creditors, and granted liberty to apply to vary or discharge the orders. The administrators' costs were also declared to be costs in the administration of the company, to be paid out of the company's assets.