Re Regis Towers Real Estate Pty Ltd (Administrator Appointed)

[2005] NSWSC 975

CITATION:	Re Regis Towers Real Estate Pty Ltd (Administrator Appointed) [2005] NSWSC 975
HEARING DATE(S):	27 September 2005
JUDGMENT DATE :	27 September 2005
JURISDICTION:	Equity
JUDGMENT OF:	Campbell J
DECISION:	Time extended. Administrator's fees allowed to be paid under order like that in Re Regis Towers Real Estate [2004] NSWSC 1251.

CATCHWORDS:	CORPORATIONS - voluntary administration - extension of time for completion of second meeting of creditors - CORPORATIONS - voluntary administration - fees of administrator accruing during lengthy adjournement of second meeting of creditors - whether order to be made allowing administrator to be paid fees from time to time, provided committee of creditors approves
CASES CITED:	Re Regis Towers Real Estate [2004] NSWSC 1251; (2004) 51 ACSR 628 Re Regis Towers Real Estate (Administrator Appointed) [2005] NSWSC 603
PARTIES:	Regis Towers Real Estate Pty Ltd (Administrator Appointed) - Plaintiff
FILE NUMBER(S):	SC 6578/04
COUNSEL:	GM Colman - Plaintiff
SOLICITORS:	Corrs Chambers Westgarth - Plaintiff

LOWER COURT JURISDICTION:

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
EQUITY LIST

CAMPBELL J

TUESDAY 27 SEPTEMBER 2005

6578/04 REGIS TOWERS REAL ESTATE PTY LTD (ADMINISTRATOR APPOINTED)

JUDGMENT – Ex Tempore

1 HIS HONOUR: In substance two orders are sought in this application. One of them is an extension of time for concluding a second meeting of creditors of the plaintiff to 28 February 2006. The plaintiff has had its second creditors meeting repeatedly extended from 14 October 2004, to 31 March 2005, to 30 June 2005, to 30 September 2005, and now a further extension is sought to 28 February 2006.

2 The plaintiff is a company which operated as the caretaker of residential apartment buildings. It has two substantial assets – the benefit of the agreement under which it conducted this caretaking arrangement, and some real estate. There has been litigation between the owners corporation of the Strata Plan for whom it carries out the caretaking responsibilities, and the company, about whether the Caretaker Agreement can be validly terminated. An agreement in principle to settle that litigation has been arrived at, which requires approval from the owners corporation in general meeting. The drafting of that agreement is proving difficult, and the solicitors for the owners corporation have sought time in which to finalise that documentation.

3 The meeting of the owners corporation to approve the agreement once its drafting is finalised cannot now occur until some time in December 2005. It is because of that delay, together with the January holiday period, that the further extension to 28 February 2006 is sought.

4 The company is carrying out its responsibilities as caretaker profitably. The administrator is of the view that if a new caretaking agreement is arrived at in accordance with the agreement in principle which has been reached, - and there is no reason to believe that it will not be – it should be possible for the benefit of that agreement to be sold for a satisfactory amount. He is also of the view that the company’s real estate ought to be sold for a satisfactory amount.

5 The court looks with some care at applications for extension of a convening period which result in administration being significantly prolonged beyond the comparatively brief opportunity for the company to get back on its feet, or to be placed into liquidation, which the legislation envisaged as the standard situation. However, it is appropriate in this case to order a further extension, and the date 28 February 2006 does not seem unreasonable.

6 The second order sought is an order providing for the administrator to receive such remuneration as is fixed by a resolution passed by a majority in value and a majority in number of the creditor. It is an order of the same type I have earlier made: Re Regis Towers Real Estate [2004] NSWSC 1251; (2004) 51 ACSR 628; Re Regis Towers Real Estate (Administrator Appointed) [2005] NSWSC 603. For the same reasons as were there given, it is appropriate to make that order again.

7 I make orders 2 and 3 in the Second Further Amended Originating Process. These orders may be entered forthwith.

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