Re Pindan Group Pty Ltd (Administrators Appointed)

In the Supreme Court of Western Australia, the plaintiffs, who are joint and several administrators and liquidators of various companies within the Pindan group, sought an extension to the convening period for the second meeting of creditors of Pindan Group and Pindan Contracting, and orders to facilitate a proposal that they enter into certain refinance agreements. The court considered the legal principles relevant to extending the convening period and limiting the personal liability of the plaintiffs under the refinance agreements. The court was satisfied that the extension of the convening period was necessary to allow the plaintiffs to assess, develop and negotiate a potential deed of company arrangement proposal, engage the Committees of Inspection, obtain appropriate advice, prepare reports to the creditors and convene the necessary second meeting of creditors. The court also considered the refinance proposal and the liquidators' authority to enter into the proposed refinance agreements. The court found that the proposed arrangements were in the interests of creditors and consistent with the objectives of the Corporations Act, and that the liquidators' contention that the refinancing documentation would not cause undue delay to the liquidations was sound. The court made orders to extend the convening period, limit the plaintiffs' liability under the refinance agreements and authorise the liquidators to enter into the proposed refinance agreements.