Tracy, in the matter of In2Food Australia Pty Ltd

In the matter of In2Food Australia Pty Ltd, the Court considered an application by the Administrators to extend the period within which they must convene the second meeting of the creditors. The Administrators, who are experienced in financial advisory and insolvency matters, had been overseeing the sale and/or recapitalisation of the companies in administration. The sale process had been significantly impacted by the COVID-19 pandemic, particularly due to lockdowns in New South Wales and Victoria, which had impeded due diligence efforts.

The legal issue before the Court was whether the circumstances warranted an extension of the convening period. The Administrators argued that the extension was necessary to complete the sale process and to maximise the return to unsecured creditors. They were supported in this application by the Receivers, who were overseeing the sale and/or recapitalisation process. The Administrators had informed creditors of the potential need for an extension at the first creditors' meeting, and there had been no objections. The Court found that the extension was appropriate and should be granted given the complexity of the corporate structure, the size and scope of the business, and the likelihood that additional time would enhance the return for creditors.

After considering the evidence and the circumstances, the Court granted the application for an extension of the convening period. The Court extended the period to allow for the completion of the sale and/or recapitalisation process, and ordered that creditors be notified of the extension. The Court also ordered that the Administrators' costs of the application be paid out of the assets of the companies in administration.