In the matter of Vical NSW Pty Limited (Administrators Appointed) ACN 065 390 016 and Arsonello Pty Limited (Administrators Appointed) ACN 080 140 843

Vical NSW Pty Limited and Arsonello Pty Limited, companies under administration, sought a further extension of the convening period for a creditors' meeting. The administrators were aiming to sell the companies' assets as a going concern, rather than as a liquidation. The case was heard in the Federal Court of Australia.

The legal issues revolved around the administrators' authority to extend the convening period, and whether the sale of assets as a going concern was feasible. The administrators argued that the extension would allow for the best outcome for creditors and employees. Opposing parties contended that the sale as a going concern was not viable, and that the convening period should not be extended.

The Court considered the statutory framework governing voluntary administrations, including sections 437A and 438 of the Corporations Act 2001 (Cth). The Court found that the administrators had the discretion to extend the convening period, provided it was in the best interests of creditors. The Court also found that it was reasonable to assume that the companies could be sold as a going concern, and that this would likely result in a better outcome for creditors and employees than liquidation. Based on this, the Court granted the extension requested by the administrators.

The Court ordered that the convening period for the creditors' meeting be extended to permit the sale of the companies' assets as a going concern. The Court further noted that the position of employees and creditors would be considered in the context of the administration, and that the extension was granted in the best interests of all parties involved.