Civicworks P/L (Receivers and Managers Appointed), Re [2001] QSC 449

L?OOiJ QSC 449 State Reporting Bureau ( -::;, Queensland Government ·· Department of Justice and Attorney-Genera( Transcript of Proceedings Copyright in this transcript is vested in the Crown. Copies thereof must not be made or sold without the written authority of the Director, State Reporting Bureau. SUPREME COURT OF QUEENSLAND CIVIL JURISDICTION JONES J No 127 of 2001 IN THE MATTER OF THE CORPORATIONS ACT 2001 and CIVICWORKS PTY LTD (RECEIVERS AND MANAGERS APPOINTED) (ADMINISTRATORS APPOINTED) ACN 092 987 203 CAIRNS .. DATE 22/11/2001 JUDGMENT 1 _?ate :26; _I/ I 0/ 4Tlt Fluu1, Tl1e Laoo 60011.b Co111plex, Oeo1ge Sb eel, D1isba11e Q. 4808. Telepl1011e. (87) S247 4800. Facsi11lile. (87) 9247 5592 -- 1 of 4 -- 22112001 Tl/MB M/T CNSl/2001 {Jones J) HIS HONOUR: This is an application by administrators of Civicworks Pty Ltd, for an extension of the period for convening the second creditors meeting. The company which was incorporated only on 23 May 2000 is clearly in financial difficulties. Administrators were appointed on 7 November 2001 and receivers and managers were appointed by the Westpac Bank, a secured creditor, on 8 November 2001. The first creditors meeting was held on 14 November 2001 and the convening period for the second creditors meeting is due to expire on 28 November 2001. The appointment of the receivers and managers has given rise to some complications in the sense that the administrators have yet been unable to obtain possession of the company books and records which are held by the receiver managers. This has made it impossible for them to give proper consideration to 10 the future of the administration and more specifically to the 20 question whether the company is able to continue to trade. Whether the company is able to continue to trade, will probably depend on the terms of a deed of arrangement which is being proposed by a Mr Roy Lavis, a director of the company. The time available between now and the convening of the second creditors meeting on present arrangements is quite inadequate for a properly thought out deed of arrangement to be prepared and for due consideration to be given to any scheme by the administrators. The further problem is that any extension of 30 the convening period will clash with the upcoming holiday 2 JUDGMENT -- 2 of 4 -- 22112001 Tl/MB M/T CNSl/2001 (Jones J) season of Christmas and New Year. It is unlikely that time to prepare the deed of arrangement and to give it due consideration could be conveniently had between now and the traditional Christmas closure period. The administrators propose that the convening period be extended to 15 January 2001. That, in all the circumstances, seems to me to be a suitable time for the expiration of that 10 convening period. I have been referred to a number of authorities, setting out the principles applicable to applications of this kind. The two that are significant, firstly, from the remarks of Justice Young in Mann v. Abruzzi Sports Club Ltd (1994) 2 ACLC 137 where he said at 138: "The spirit and object of the division is set out in s.435A, that is to maximise the chances of the company 20 continuing in existence or, alternatively, terminate its existence in the most appropriate way. Accordingly, the powers given to the Court under the division should be exercised with that object firmly in view." The competing issues relate to the speedy winding up of an administration and that has to be balanced, of course, against "sensible and constructive actions directed towards maximising the return for creditors and the return for shareholders". See Diamond Press Australia Pty Ltd unreported (2001) NSWSC 313 (23 April 2001). Bearing in mind those principles and the circumstances which I have mentioned, I propose to make orders in terms of the draft 3 JUDGMENT 30 -- 3 of 4 -- 22112001 Tl/MB M/T CNSl/2001 (Jones J) initialled by me and placed with the papers. 4 JUDGMENT -- 4 of 4 --