In the matter of Tiaro Coal Limited

[2015] NSWSC 2092

Supreme Court

New South Wales

Medium Neutral Citation:	In the matter of Tiaro Coal Limited [2015] NSWSC 2092
Hearing dates:	3 August 2015
Date of orders:	03 August 2015
Decision date:	03 August 2015
Jurisdiction:	Equity - Corporations List
Before:	Brereton J
Decision:	Order extending convening period granted.
Catchwords:	CORPORATIONS – voluntary administration – creditor’s meetings – application for a further extension of convening period – where order extending convening period already made – where examination summonses issued and listed for later dates – where administrators cannot properly make recommendations to creditors until examinations completed – where no secured creditors – where employees would not be prejudiced by further delay.
Legislation Cited:	(CTH) Corporations Act 2001, s 436A, s 439A, s 439A(6), s 447(1)
Category:	Procedural and other rulings
Parties:	David Winterbottom, Martin Madden and Rahul Goyal as Joint and Several Administrators of Tiaro Coal Limited (Administrators Appointed) (first applicant) Tiaro Coal Limited (Administrators Appointed) (second applicant)
Representation:	Counsel: B Katekar (applicants)   Solicitors: Quinn Emanuel Urquhart & Sullivan (applicants)
File Number(s):	2015/224281

Judgment (ex tempore)

1. HIS HONOUR: The plaintiff administrators were appointed on 31 March 2015 in relation to the company Tiaro Coal Limited pursuant to (CTH) Corporations Act 2001, s 436A. On 30 April 2015, the Court ordered that the convening period be extended to 7 August 2015. Before the Court by originating process filed on 31 July 2015 is an application for a further extension of the convening period to 7 December 2015.

2. The original application had sought an extension of six months. At that stage, the Court considered it appropriate to allow three months. The administrators now adduce evidence that they have taken steps to have examination summonses issued, which are listed before the Court later this month and in October of this year. A number of DOCA proposals have emerged, at least some of which may result in creditors receiving a dividend of 100 cents in the dollar. A number of complexities attend the administration in relation to interests of the company in a number of mining tenements which may be vulnerable in the event that the company went into liquidation immediately. The company has no secured creditors. It has two employees only, who are assisting the administrators and who would, in any event, both be excluded employees and would thus not be prejudiced by delay in convening the second meeting.

3. Creditors were notified of the first extension and none applied to set it aside. They have been notified of the intention to make this application, which notification has produced no response. The administrators consider that they will not be in a position to make an appropriate recommendation under Corporations Act, s 439A, until they have completed the examinations and certain further investigations, and consider that the prospects of retaining the tenements is greatly enhanced while the company remains in administration.

4. I am satisfied that it is appropriate to grant the further extension sought upon the usual terms.

5. The Court orders that:

1. Pursuant to Corporations Act, s 439A(6), the period within which the applicants must convene the second meeting of creditors required by s439A be extended up to and including 7 December 2015;

2. Pursuant to Corporations Act, s 447(1), the second meeting of creditors of Tiaro Coal Limited required by s 439A may be held at any time before or within four business days after the end of the convening period as extended by the Court notwithstanding the provisions of s 439A(2) of the Corporations Act;

3. The applicants inform those creditors (including those persons claiming to be creditors) of Tiaro Coal Limited for whom they have a current postal address, facsimile number or email (“creditors”) and the Australian Securities & Investments Commission (ASIC) of the orders made pursuant to this application and any further applications for a further extension of the convening period by means of a circular forwarded by post within seven days after the making of these orders;

4. With respect to all creditors of the company for whom the applicants do not have a current postal address in Australia, facsimile number or email address, the applicants inform those creditors of the orders made this day and any further applications for a further extension of the convening period of the company, by publishing the circular referred to at paragraph (3) on the website within seven days;

5. Liberty to apply on three days’ notice to any person who can demonstrate sufficient interest to modify or discharge any of these orders;

6. The applicants have liberty to apply generally for any purpose in connection with the administration of the company;

7. The costs of this application be costs and expenses in the administration and paid out of the assets of the company.

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Decision last updated: 19 August 2016