FEDERAL COURT OF AUSTRALIA
Woods, in the matter of Paladin Energy Ltd (Administrators Appointed) [2017] FCA 901
File number: WAD 368 of 2017 Judge: BARKER J Date of judgment: 28 July 2017 Catchwords: CORPORATIONS – application to extend statutory convening period for creditors’ meeting pursuant to s 439A of the Corporations Act 2001 (Cth) – where plaintiff appointed administrators of companies Legislation: Corporations Act 2001 (Cth) ss 435A, 439A, 439A(2), 439A(3), 439A(4), 439A(6), 447A, 447A(1), Part 5.3A
Fair Entitlements Guarantee Act 2012 (Cth)
Federal Court of Australia Act 1976 (Cth) s 37AF, s 37AG(1)(a)
Cases cited: Iannuzzi, in the matter of Josa Constructions Pty Ltd (Administrators Appointed) [2017] FCA 822
Re Riviera Group Pty Ltd(Administrators Appointed) (Receivers and Managers Appointed) [2009] NSWSC 585
Re Silvia, in the matter of Austcorp Group Limited (Administrators Appointed) [2009] FCA 636
Date of hearing: 28 July 2017 Registry: Western Australia Division: General Division National Practice Area: Commercial and Corporations Sub-area: Corporations and Corporate Insolvency Category: Catchwords Number of paragraphs: 32 Counsel for the Plaintiffs: Ms A Hosking Solicitor for the Plaintiffs: King & Wood Mallesons ORDERS
WAD 368 of 2017 IN THE MATTER OF PALADIN ENERGY LTD (ADMINISTRATORS APPOINTED) ABN 47 061 681 098
MATTHEW DAVID WOODS, HAYDEN LEIGH WHITE AND GAYLE DICKERSON IN THEIR CAPACITIES AS JOINT AND SEVERAL ADMINISTRATORS OF PALADIN ENERGY LTD (ADMINISTRATORS APPOINTED) ABN 47 061 681 098; PALADIN FINANCE PTY LTD (ADMINISTRATORS APPOINTED) ABN 83 117 234 278; PALADIN ENERGY MINERALS NL (ADMINISTRATORS APPOINTED) ABN 81 073 700 393
Plaintiffs
JUDGE:
BARKER J
DATE OF ORDER:
28 JULY 2017
THE COURT ORDERS THAT:
Extension of convening period
1.An order pursuant to s 439A(6) of the Corporations Act 2001 (Cth) (Act) that the convening period within which the plaintiffs must convene the second meeting of creditors of the companies under s 439A of the Act (Second Meetings) be extended to 29 September 2017.
2.An order pursuant to s 447A(1) of the Act that Part 5.3A of the Act is to operate such that the Second Meetings may be held, together or separately, at any time during, or wthin five business days after the end of, the convening period as extended by paragraph 1 above, notwithstanding the provisions of s 439A(2) of the Act.
Service and notices
3.An order that the plaintiffs, within seven business days after the making of these orders, are to take all reasonable steps to give notice of these orders to the companies’ creditors (including the persons claiming to be creditors), by means of a circular:
(a)to be sent by email transmission to creditors for whom the plaintiffs have a current email address; or
(b)to be sent by ordinary post to creditors for whom the plaintiffs have only a postal address.
4.An order pursuant to s 447A(1) of the Act that Part 5.3A of the Act is to operate such that the requirement on the plaintiffs to issue notices under s 439A(3) of the Act be modified so that notice of the…
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- Woods, in the matter of Paladin Energy Ltd (Administrators Appointed) [2017] FCA 901
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- [2017] FCA 901
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CaseChat Overview and Summary
The court granted the application, extending the convening period for the second meeting of creditors to 29 September 2017. The court allowed the meetings to be held within five business days after the end of the extended convening period. The plaintiffs were ordered to notify creditors of the orders and the extended convening period by email or ordinary post, depending on the information held by the plaintiffs. The court also modified the notice requirements, allowing for electronic and published notices, and permitted the information required to accompany the notices to be available for download from a specified website. Further, the court granted liberty to certain parties to apply for modification or discharge of the orders and specified that certain documents on the court file were to be redacted or suppressed for confidentiality purposes. The plaintiffs' costs of and incidental to this application were to be paid out of the assets of the companies.
Orders
Orders of the court
Extension of convening period
1. An order pursuant to s 439A(6) of the Corporations Act 2001 (Cth) (Act) that the convening period within which the plaintiffs must convene the second meeting of creditors of the companies under s 439A of the Act (Second Meetings) be extended to 29 September 2017.
2. An order pursuant to s 447A(1) of the Act that Part 5.3A of the Act is to operate such that the Second Meetings may be held, together or separately, at any time during, or wthin five business days after the end of, the convening period as extended by paragraph 1 above, notwithstanding the provisions of s 439A(2) of the Act.
Service and notices
3. An order that the plaintiffs, within seven business days after the making of these orders, are to take all reasonable steps to give notice of these orders to the companies’ creditors (including the persons claiming to be creditors), by means of a circular:
(a) to be sent by email transmission to creditors for whom the plaintiffs have a current email address; or
(b) to be sent by ordinary post to creditors for whom the plaintiffs have only a postal address.
4. An order pursuant to s 447A(1) of the Act that Part 5.3A of the Act is to operate such that the requirement on the plaintiffs to issue notices under s 439A(3) of the Act be modified so that notice of the Second Meetings will be validly given to any creditors by, not less than five business days prior to the date of the proposed Second Meetings:
(a) giving such notice electronically by email sent to the email address of any creditor (including persons claiming to be creditors) of the companies for whom or which the plaintiffs hold an email address;
(b) sending such notice to the postal address or facsimile number, or otherwise as provided for by the Act or the Corporations Regulations 2001 (Cth), to any creditors not being a creditor referred to in sub-paragraph (a); and
(c) causing such notice to be published in The Insolvency Notices website located at: http://insolvencynotices.asic.gov.au/.
5. An order pursuant to s 447A(1) of the Act that s 439A(4) of the Act be modified such that the information required under s 439A(4) to accompany the said notices to creditors may be validly given if it is:
(a) available for download from the website that is maintained by the plaintiffs; and
(b) referred to in the notices issued and published in accordance with paragraph 4 above, as being available for downloaded from the website that is maintained by the plaintiffs.
6. An order that the following parties have liberty to apply on giving all other interested parties not less than three business days’ written notice:
(a) any person who can demonstrate sufficient interest (including any creditor of the companies) for the purpose of modifying or discharging any orders made pursuant to paragraphs 1 and 2 above; and
(b) the plaintiffs, for the purpose of seeking any further extension of the convening period.
Confidentiality
7. Pursuant to sections 37AF and 37AG(1)(a) of the Federal Court of Australia Act 1976 (Cth), and subject to any further order made on the application of a person interested in the proceeding:
(a) the documents on the Court file identified in the table annexed to these orders and marked Annexure A be replaced with redacted copies, with the identified confidential sections redacted and marked “confidential”; and
(b) any unredacted copies of the documents on the Court file identified in Annexure A be suppressed or sealed by the Court, and are not to be published or accessed except pursuant to an order of the Court.
Costs and other orders
8. The plaintiffs’ costs of and incidental to this application be costs in the administration of each of the companies, and be paid out of the assets of those companies.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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