Farnsworth in his capacity as voluntary administrator, in the matter of Monorant Pty Limited (administrator appointed)

Mr Farnsworth, the voluntary administrator of the corporate plaintiffs, applied for extensions of the convening periods for the second meetings of creditors of the corporate plaintiffs. The corporate plaintiffs, through a complex trust structure, comprise the Tony Ferguson group of companies, which operates a business selling weight loss products and conducts the Tony Ferguson Weight Loss Program. The application sought extensions to enable the completion of a Report as to Affairs for each corporate plaintiff, facilitating a proposal likely to lead to a better return to creditors than if each corporate plaintiff was wound up.

The court considered the balance between the expectation of speedy administration and the need to avoid prejudice, recognising that complex administrations may require extensions. The administrator must provide evidence establishing the grounds for the extension and any potential prejudice that may result from granting it. The court balanced the need for a speedy administration against the potential benefits of the extensions, ultimately granting the application on the basis that the extensions would facilitate a more beneficial outcome for creditors.

The court extended the convening periods for the second meetings of creditors of the corporate plaintiffs up to and including 17 November 2013. The court also granted the administrator liberty to apply for any further extensions of the convening periods prior to 17 November 2013. Additionally, the court restricted the publication and disclosure of certain information to prevent prejudice to the proper administration of justice.