Otway, liquidator AMD Freight Pty Ltd (in liq)

The case before the court involves the application by the plaintiffs to be appointed as administrators for AMD Freight Pty Ltd, a company in liquidation. The plaintiffs, who are seeking to be appointed as joint and several administrators, argue that placing the company into voluntary administration is in the best interests of the creditors, given the company's potential profitability and the employment of six staff and two contractors. The plaintiffs have also proposed that the company should continue to trade to preserve its value and avoid the crystallisation of employee entitlements and a potential discount sale of assets. The court was tasked with deciding whether the plaintiffs should be appointed as administrators and if the requirement for the first creditors’ meeting should be dispensed with.

The court considered the plaintiffs' submissions and the evidence provided, noting that no financiers or unsecured creditors had opposed the relief sought. The court was satisfied that the avoidance of the costs of the first meeting of creditors was of benefit to the creditors of the company as a whole. The court also acknowledged that any creditor who considered that dispensing with the first meeting of creditors had an opportunity to voice any opposition to the proposed course. Given the absence of any such opposition, the court considered it appropriate to dispense with the requirement to hold the meeting, but granted liberty to apply to any affected person to vary that order.

The court granted the relief sought on the originating application, with the proviso that there would be liberty to apply to interested non-parties to vary or revoke the orders within a specified time. The court also ordered that the plaintiffs be appointed as joint and several administrators of the company, dispensed with the requirement for the plaintiffs to comply with s 436E of the Act, and ordered that the plaintiffs' costs of, and incidental to this application be costs in the liquidation of the company and are to be paid out of the company's assets. Any creditor of the company, including any employee of the company, has liberty to apply to vary or revoke the above orders, initially by means of email to the Chambers of the presiding judge.

In summary, the court has granted the plaintiffs' application to be appointed as administrators for AMD Freight Pty Ltd, dispensed with the requirement for the first creditors’ meeting, and ordered that the plaintiffs' costs be paid out of the company's assets. The court has also granted liberty to apply to vary or revoke the orders within a specified time.