Kijurina and Albarran as joint and several administrators, in the matter of S.K International Business Developments Pty Ltd (administrators appointed)
[2014] FCA 1421
•19 December 2014
FEDERAL COURT OF AUSTRALIA
Kijurina and Albarran as joint and several administrators, in the matter of S.K International Business Developments Pty Ltd (administrators appointed) [2014] FCA 1421
Citation: Kijurina and Albarran as joint and several administrators, in the matter of S.K International Business Developments Pty Ltd (administrators appointed) [2014] FCA 1421 Parties: BRENT KIJURINA AND RICHARD ALBARRAN AS JOINT AND SEVERAL ADMINISTRATORS OF S. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED) and S. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED) File number(s): NSD 1350 of 2014 Judge(s): YATES J Date of judgment: 19 December 2014 Catchwords: CORPORATIONS - administration – application under s 436A(6) of the Corporations Act 2001 (Cth) for extension of time for convening the second meeting of creditors Legislation: Corporations Act 2001 (Cth) s 439A Date of hearing: 19 December 2014 Place: Sydney Division: GENERAL DIVISION Category: Catchwords Number of paragraphs: 8 Solicitor for the Plaintiffs: ABL Lawyers (with Mr D Gasic appearing)
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
NSD 1350 of 2014
BETWEEN: BRENT KIJURINA AND RICHARD ALBARRAN AS JOINT AND SEVERAL ADMINISTRATORS OF S. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED)
First PlaintiffS. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED)
Second PlaintiffJUDGE:
YATES J
DATE OF ORDER:
19 DECEMBER 2014
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
1.Pursuant to section 439A(6) of the Corporations Act 2001 (Cth) (Act) the period within which the Administrators of S. K International Business Developments Pty Ltd(Company) must convene a meeting of the creditors of the Company pursuant to s 439A of the Act be extended up to and including 31 March 2015.
2.Pursuant to section 447A(1) of the Act the meeting of the creditors of the Company required by section 439A of the Act may be held at any time during the period comprising the convening period as extended and the period of 5 business days after the end of the convening period, notwithstanding the provisions of section 439A(2) of the Act.
3.Liberty be granted to the first plaintiffs to apply to the Court for any further extensions of the convening period referred to in Order 1 at any time prior to 31 March 2015.
4.Liberty be granted to any person affected by these orders to apply, on not less than 48 hours’ notice, to vary or discharge these orders.
5.The administrators are entitled to be indemnified out of the assets of the Company for the costs of this application pursuant to section 443D of the Act.
6.The first plaintiffs to give notice of these orders to the Company’s creditors by means of a circular posted to the Company’s creditors by ordinary post or email sent no later than 7 days from the date that these orders are made.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
NSD 1350 of 2014
BETWEEN: BRENT KIJURINA AND RICHARD ALBARRAN AS JOINT AND SEVERAL ADMINISTRATORS OF S. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED)
First PlaintiffS. K INTERNATIONAL BUSINESS DEVELOPMENTS PTY LTD (ACN 098 371 727) (ADMINISTRATORS APPOINTED)
Second PlaintiffJUDGE:
YATES J
DATE:
19 DECEMBER 2014
PLACE:
SYDNEY
REASONS FOR JUDGMENT
The first plaintiffs are the joint and several administrators of S.K International Business Developments Pty Ltd (administrators appointed) (the company). They were appointed on 4 December 2014. They apply, under s 439A(6) of the Corporations Act 2001 (Cth), for an extension of the convening period for the second meeting of creditors of the company. Unless extended, the convening period will expire on 13 January 2015. The extension sought is to 31 March 2015.
The company is in the business of managing commercial properties, of which it is the registered owner. The company is presently the registered owner of two properties located at Market Street, Wollongong. The properties are subject to eight leases.
Since the date of their appointment, the first plaintiffs have attempted to obtain valuations of the properties. To date, two valuations have been received. A further valuation is expected. The first plaintiffs are in the process of obtaining marketing proposals from four real estate agents. To date, three proposals have been received. A fourth is expected.
The only known secured creditor of the company is Think Tank Group Pty Ltd, for the amount of $3,905,239.42, as at 5 December 2014. The only known unsecured creditors of the company are the Australian Taxation Office, for the amount of $9,326.63, and Willard Johnson Partners, for the amount of approximately $4,000. I should record that there are outstanding lodgements with the Australian Taxation Office, thus the amount ultimately owed to it may be greater than that to which I have referred.
The reason for the extension that is sought is to enable the outstanding valuation and outstanding market proposal to be received, and for the properties to be marketed and hopefully sold with completion occurring by 31 March 2015, so as to enable the creditors of the company to make an informed decision as to whether the administration should continue, whether the company should be placed in liquidation, or whether a deed of company arrangement should be entered into.
One of the administrators, Mr Kijurina, has deposed to his belief that sufficient funds will be recovered from the realisation of the packaged sale of the properties to discharge the secured creditor and provide for a substantial, if not complete, return to known unsecured creditors. One of the valuations that has been received would indicate the possibility that the claims of all creditors will be met fully, if a sale takes place. Mr Kijurina has deposed that the sale of the properties will enable the first plaintiffs to keep the company trading and to pay its trade creditors in full.
On 17 December 2014, a notice was sent to the known creditors, informing them of the the first plaintiffs’ intention to seek an extension of the convening period for approximately three months. All known creditors have consented to such an application being made. In light of the matters put to me in Mr Kijurina’s affidavit, and given the consent expressed by the known creditors, I am persuaded that this is an appropriate case in which to grant the extension that is sought.
Orders will be made accordingly.
I certify that the preceding eight (8) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Yates. Associate:
Dated: 19 December 2014
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