Re Unlockd Ltd (administrators appointed)

Unlockd Ltd, along with two related entities, had administrators appointed due to financial difficulties. The administrators applied to the court for several orders, including an extension of the convening period for creditor meetings and directions to facilitate intercompany loans. The court had to determine whether the proposed actions were in the best interests of the companies' creditors and whether any creditors or third parties would be prejudiced. Additionally, the administrators sought to modify their personal liability for any intercompany loans, which the court had to evaluate to ensure it would not disadvantage the creditors.

The legal issues before the court included whether extending the convening period for creditor meetings would serve the best interests of the creditors and whether such an extension could cause prejudice to any creditor or third party. Furthermore, the court had to decide if the administrators would be justified in procuring a loan from the holding company to the operating company, considering the imminent due dates of certain monies. Lastly, the court needed to assess if modifying the administrators' personal liability for intercompany loans would be in the best interests of the creditors and if such modification would cause prejudice to the creditors.

The court found that the proposed actions were in the best interests of the companies' creditors. It granted the application for an extension of the convening period for the second meetings of creditors, noting that it would not prejudice any creditor or third party. The court also allowed the administrators to seek directions to facilitate the intercompany loans, considering the imminent due dates of certain monies. Additionally, the court modified the administrators' personal liability for the proposed intercompany loans, concluding that it would best serve the interests of the creditors and would not cause them prejudice or disadvantage.

The court's final orders included the extension of the convening period for the second meetings of creditors, authorisation for the administrators to seek directions for intercompany loans, and modification of the administrators' personal liability for the proposed intercompany loans. These orders were made to ensure that the administrators could effectively manage the companies' affairs and secure necessary funds to continue operations, all while protecting the interests of the creditors.