In the matter of Harrisons Pharmacy Pty Limited (Administrators Appointed) (Receivers and Managers Appointed)

In the case concerning Harrisons Pharmacy Pty Limited, the administrators of the company sought an extension of the convening period, which was initially set to end on 1 May 2013. The extension was requested to allow sufficient time to arrange the sale of the businesses and assets of the Harrison Group as going concerns. The primary driving force behind this application were the receivers, David John Frank Lombe and Jason Mark Tracy, who were appointed by Bankwest on 25 March 2013 and 29 March 2013, respectively. The receivers supported the extension and provided evidence indicating that selling the businesses as a going concern would likely result in better returns for the creditors compared to an immediate winding up of the company.

The legal issues the court had to address involved balancing the objectives of Part 5.3A of the Act, which seek to maximize the chance of the company or its business continuing in existence, or achieving a better return for the company's creditors and members than an immediate winding up. The court had to consider whether an extension of the convening period would allow for the sale of the businesses as a going concern, and if so, for what period. The court also had to assess the potential prejudice to creditors and employees if the extension was granted, as well as the likelihood of realising the businesses' full value within the proposed timeframe.

The court ultimately decided to grant the extension, reasoning that the evidence provided by the receivers indicated a reasonable prospect of selling the businesses within the requested timeframe. The court highlighted that the businesses primarily comprised goodwill and leases, and the receivers had already obtained several non-binding offers, suggesting a viable market for the assets. The court also noted the receivers' commitment to continue paying employees and trade creditors in the ordinary course, which would mitigate potential prejudice to these parties. Given these factors, the court found that the extension was warranted to achieve a better return for the creditors and to allow the administrators to complete their task effectively.

The final orders of the court were to extend the convening period by a period of 6 months, up until 31 October 2013. This extension aimed to facilitate the sale of the businesses as a going concern, which the court believed would be in the best interests of the creditors.