Longley, in the matter of Dixon Advisory & Superannuation Services Pty Ltd (Administrators Appointed) (No 2)

Dixon Advisory & Superannuation Services Pty Ltd, a company in administration, sought a further extension of the convening period for the second meeting of creditors under section 439A of the Corporations Act 2001. The application was heard by the Federal Court, which considered the need for additional time to negotiate a deed of company arrangement (DOCA) proposal. The complexity of the administration was compounded by multiple court proceedings, including a proceeding by the Australian Securities and Investments Commission and two representative proceedings. The court was required to decide whether the application for a further extension was warranted, considering the objectives of maximising the chances of the company’s continuation or achieving a better return for creditors.

The court examined the reasons provided for the extension, including the need for more time to negotiate and assess the DOCA proposal and the absence of a proposal until 9 August 2022. The delay was partly due to uncertainty about the availability of insurance proceeds. The Administrators stated that they needed four to six weeks after an interlocutory application hearing on 7 September 2022 to finalise the DOCA proposal, with an anticipated completion date of late October or early November 2022. Without the extension, the Administrators would recommend liquidation, which they considered adverse for creditors. The Committee of Inspection, representing creditors, supported the extension, and the Administrators believed it was in creditors’ best interests without causing specific prejudice to any party.

The court granted the application, extending the convening period to 30 November 2022. It also required the Administrators to notify creditors of the decision and provided liberty to modify or discharge the orders with proper notice. The Administrators’ costs were declared costs in the administration.