Re BIS Finance Pty Ltd

BIS Finance Pty Ltd was the subject of an application by two of its creditors for an order convening meetings of creditors to consider proposed schemes of arrangement. The applicants sought an order under section 411(2)(b) of the Corporations Act 2001 (Cth) to convene meetings of creditors. The defendants, BIS Finance and its related entities, did not oppose the application. The court was required to determine whether the requirements to order the scheme meetings were satisfied, including whether the applicants had standing to make the application and whether the schemes provided for the fair and equitable treatment of creditors.

The court found that the applicants had standing to make the application as they were creditors with provable claims exceeding $20,000 each. The court also found that the proposed schemes provided for the fair and equitable treatment of creditors, as they involved a debt-to-equity swap, a standstill period, and variation of loan documentation. The court noted that the schemes were interdependent and that the proposed restructuring was in the best interests of the company and its creditors. The court was satisfied that the requirements to order the scheme meetings were met and made the orders sought by the applicants.

The court appointed a foreign representative to act on behalf of a creditor that held assets in a foreign jurisdiction. The orders included convening meetings of creditors to consider the proposed schemes of arrangement and appointing the foreign representative. The court also made orders for the service of documents and the provision of information to creditors. The orders were made in accordance with the provisions of the Corporations Act.