CBL Corporation Limited v Jackson

CBL Corporation Limited and its subsidiaries are in voluntary administration, and the administrators have applied to the High Court for an extension of the adjournment of the watershed meeting. The watershed meeting was originally scheduled for 18 May 2018 but was adjourned to no later than 2 July 2018. The administrators are seeking a further adjournment until 17 August 2018, to allow time to consider a restructuring proposal that has been put forward by two of the directors of CBL. The administrators believe that the proposal warrants careful consideration but that the current timeframe would not allow for this.

The legal issue before the court was whether the administrators' application should be granted. The court considered the purpose of the voluntary administration regime and the balance between the need for prompt action and the need to avoid undue haste that could prejudice sensible and constructive actions directed towards the objects of the regime. The court also considered the impact of the proposed adjournment on the creditors and other stakeholders, and whether there was any apparent prejudice to any party in adjourning the matter.

The court granted the administrators' application, finding that the restructuring proposal could result in benefit to both creditors and shareholders, and that the complexity of the group's affairs meant that any proposal for the restructuring of the business ought not to be approached hastily. The court also noted that there was no apparent prejudice to any party in adjourning the matter and that if there was concern from any party that such a prejudice would arise, it could be accommodated by reserving leave to any interested person to vary or set aside the order.

The court made orders in accordance with paragraph 1(a)-(f) of the interlocutory application dated 12 June 2018.