In the matter of Fostide Pty Ltd (Administrators Appointed)

[2013] NSWSC 663

Supreme Court

New South Wales

Medium Neutral Citation:	In the matter of Fostide Pty Ltd (Administrators Appointed) [2013] NSWSC 663
Hearing dates:	27 May 2013
Decision date:	27 May 2013
Jurisdiction:	Equity Division - Corporations List
Before:	Hammerschlag J
Decision:	Period for the convening of the second meeting of creditors extended to 30 August 2013. The meeting may be convened at any time prior to five business days after the end of the convening period as extended
Catchwords:	CORPORATIONS - Corporations Act 2001 (Cth) Pt 5.31A, ss 439A, 447A(1) - voluntary administration - extension of period for the convening of second meeting of creditors
Legislation Cited:	Corporations Act 2001 (Cth)
Category:	Principal judgment
Parties:	Martin John Green and Peter Paul Krejci in their capacity as joint and several administrators of Fostide Pty Limited (Administrators Appointed) - Plaintiffs Fostide Pty Limited (Administrators Appointed) - Second Plaintiff Vostide Pty Limited (Administrators Appointed) - Third Plaintiff Pimleigh Pty Limited (Administrators Appointed) - Fourth Plaintiff Milby Holdings Pty Limited (Administrators Appointed) - Fifth Plaintiff Balhaven Pty Limited (Administrators Appointed) -Sixth Plaintiff Mehut Pty Limited (Administrators Appointed) - Seventh Plaintiff
Representation:	Counsel: J.T. Johnson - Plaintiffs Solicitors: Watson Mangioni Lawyers Pty Limited - Plaintiffs
File Number(s):	2013/116962

ex tempore Judgment

1. HIS HONOUR: On 15 April 2013 Black J made orders extending in the first instance to 31 May 2013 the period within which the plaintiffs, as administrators of Fostide Pty Ltd (Administrators Appointed) ACN 124 864 099 and five other companies ("the companies"), are required under s 439A of the Corporations Act 2001 (Cth) ("the Act") to convene the second meeting of creditors.

1. His Honour further ordered pursuant to s 447A(1) of the Act that Pt 5.3A be modified in relation to each of the companies such that notwithstanding s 439A(2) the second meeting of the creditors of the companies may be convened at any time prior to five business days after the end of the convening period (as extended) provided that the plaintiffs give notice of the meeting in accordance with s 439(3) of the Act. His Honour gave liberty to apply.

1. The orders were made in terms of Originating Process filed by the plaintiffs on 15 April 2013. The application was supported by an affidavit sworn by Mr Peter Paul Krejci, one of the administrators, on 11 April 2013, and documents exhibited to that affidavit and designated as Exhibit P1. His Honour's reasons recognised the possibility that a further extension may be sought in due course, and his Honour stood the matter over until today.

1. By Interlocutory Process filed 23 May 2013, and supported by an affidavit of Mr Krejci of even date, the plaintiffs seek a further extension of the date by which they are required to convene the second meeting of creditors of each of the companies to 30 August 2013, together with ancillary orders. In his recent affidavit, Mr Krejci describes matters which have been attended to by or on behalf of the administrators since previous orders were made.

1. The companies operate as a retail store group and, amongst other things, the head company has entered into a licence agreement with Zehut Pty Ltd, a director related entity, which continues to fund monthly in advance the rental commitments for the various stores which the companies continue to occupy. The administrators are of the opinion that the continued operation of the business is for the benefit of all concerned, and there is also in contemplation the possibility of pooled Deed of Company Arrangement.

1. The circumstances outlined by Mr Krejci make it clear that the extension is properly applied for, and I am satisfied that it should be granted. The intention of seeking the extension was notified to creditors by letter dated 22 May 2013. No creditor has indicated any opposition. The matter was called outside Court today on two occasions and no one has appeared to oppose the relief sought.

1. I make orders in accordance with the document entitled "Order" which I have initialled, dated today's date, and placed with the papers.

1. I stand these proceedings over before the Corporations List Judge on 2 September 2013.

1. These orders are to be entered forthwith.

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Decision last updated: 29 May 2013