Silvia v Fea Carbon Pty Ltd (ACN 009 505 195) (Administrators Appointed) (Receivers and Managers Appointed) (No 2)

This case involved the administrators of FEA Plantations Ltd (FEAP) seeking an extension of time to give notice under section 443B of the Corporations Act 2001 (Cth) to lessors of properties leased by FEAP, and to be excused from personal liability for rent until the notice is given. The initial extension was granted on 30 April 2010, due to the administrators not having a complete understanding of the payments due under the leases. The second extension sought to allow the administrators to give notice up to 30 June 2010, and to be excused from personal liability for rent until then. The primary issue was whether the administrators should be granted a further extension of time.

The court considered that the administrators still did not know which leases had been granted by related companies, which related companies had granted those leases, and how much was due to be paid for the next instalment of rent falling due on 1 June. The court also considered the status of inter-company accounts and the possibility of prepayment of rent. The court granted a further short extension of 10 days, which could be shortened if information is provided quickly. The court did not extend the relief to cover notices and liabilities in respect of leases granted by third parties, as no rent to external landlords was due prior to 1 July 2010.

The court reasoned that the administrators should be granted a further short extension of time to give notice under section 443B of the Corporations Act 2001 (Cth) and to be excused from personal liability for rent until the notice is given. The court considered the administrators' lack of information about the leases and the importance of identifying the precise related company which is the landlord. The court believed that a period of 10 days should suffice, which could be shortened if the receivers provide the necessary information quickly. The court did not extend the relief to cover notices and liabilities in respect of leases granted by third parties, as no rent to external landlords was due prior to 1 July 2010.

The court ordered that the administrators of FEA Plantations Ltd (FEAP) be granted a further short extension of time to give notice under section 443B of the Corporations Act 2001 (Cth) and to be excused from personal liability for rent until the notice is given. The extension would be for a period of 10 days, which could be shortened if the receivers provide the necessary information quickly. The relief did not cover notices and liabilities in respect of leases granted by third parties. The costs of the application were to lie where they fell.