Cairns Oil Distributors P/L & Ors (Administration appointed) [2001] QSC 283

47'7:i1'0 State Reporting Bureau ITranscript of Proceedings , -.., -~ '.'"C· I:-, . ' ,:•·· .. ·.:;i 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 Application No 40 of 2001 IN THE MATTER OF THE CORPORATIONS LAW and PETER JOHN MORRIS AND TODD WILLIAM KELLY AS VOLUNTARY ADMINISTRATORS OF LOXGOLD PTY LTD (ADMINISTRATION APPOINTED) ACN 010 839 004, GRABAU INVESTMENTS PTY LTD (ADMINISTRATOR APPOINTED) ACN 009 915 388, WOLRAB SERVICES PTY LTD (ADMINISTRATOR APPOINTED) ACN 009 952 130, ANIMUST PTY LTD (ADMINISTRATOR APPOINTED) ACN 010 888 767, KUKI PTY LTD (ADMINISTRATOR APPOINTED) ACN 010 491 335, CAIRNS OIL DISTRIBUTORS PTY LTD (RECEIVERS AND MANAGERS APPOINTED) (ADMINISTRATOR APPOINTED) ACN 010 888 776 AND CAIRNS OIL DISTRIBUTORS (PORT STAR) PTY LTD (RECEIVERS AND MANAGERS APPOINTED (ADMINISTRATOR APPOINTED) ACN 010 493 197 CAIRNS .. DATE 04/04/2001 JUDGMENT 1 Applicant Respondents· 4TI I Floo1, Tl 1e Laoo 6001 ts 80111plex, Oeo1 ge Ob eel, 81isba11e Q. 4BBB. Telep I 1011e. (OT) 9247 4900. Facsil I rile. (Of) 9247 5592 -- 1 of 3 -- 04042001 Tl/LET M/T CNSl/2001 (Jones J) HIS HONOUR: This is an application, pursuant to section 447A of the Corporations Law, seeking to extend the time for the holding of a second creditors meeting. The material before me shows that receivers and managers were appointed to the various companies on 7 December 2000, 17 January 2001 and 29 January 2001. The companies' associated entities which were involved in the conduct of a oil 10 distribution business under the name of Cairns Oil Distributors Pty Ltd, and Cairns Oil Distributors (Port Star) Pty Ltd. The second meeting of creditors of three of the companies was due on 13 February 2001, and a similar meeting for other companies was due on 23 February 2001, and for the last of the companies on 12 April 2001. The material before me discloses that there is a complex interlocking arrangement between these companies. The solution to creditors having any satisfaction at all seems to be the sale of the business, or at least some arrangements made in respect of the business with the Caltex Oil Company. The receivers and managers are attempting to conclude some arrangement in this arena and to take to the second meeting of creditors a proposal which might permit the companies to continue. That, of course, may not happen, but at least the opportunity for such an outcome to be reached should be 30 allowed. 2 JUDGMENT -- 2 of 3 -- 04042001 Tl/LET M/T CNSl/2001 (Jones J) The circumstances in which the Court's discretion, under section 447A sought to be exercised, have been considered in a number of cases, particularly the case re Brian Rochford Limited, the case of Sherman v. Companies in schedule 1, and in the matter of Ricon Constructions Pty Ltd (In Liquidation). Those cases set out the principles which guide my determination in this case. The applicant has sought an extension to 30 June 2001 for the holding of the second meeting of creditors, pursuant to section 439B(2) of the Corporations Law. This period seems to me to be unduly long, and it may result in delays in the creditors knowing what their financial position is at the close of the financial year. It seems to me that if negotiations are already under way with the Caltex Oil Company they ought to be able to be concluded in a timely fashion to allow the meeting of creditors to take place on or before 1 June 2001, and I will allow an extension to that date. I therefore make orders in terms of the amended draft initialled by me and placed with the papers. 3 JUDGMENT 10 20 -- 3 of 3 --