Hill, in the matter of Autocare Services Pty Ltd (administrators appointed) [2021] FCA 167

FEDERAL COURT OF AUSTRALIA

Hill, in the matter of Autocare Services Pty Ltd (administrators appointed) [2021] FCA 167 File number(s): NSD 109 of 2021

Judgment of: FARRELL J

Date of judgment: 26 February 2021

Date of publication of reasons: 3 March 2021

Catchwords: CORPORATIONS – application for extension of the convening period for the second meeting of creditors under s 439A(6) of the Corporations Act 2001 (Cth) – application granted CORPORATIONS – application for modification of operation of s 443A under s 447A of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations) to limit the liability of administrators under a proposed funding agreement – where funding may be necessary to ensure that the company may pay debts as they fall due during the extended convening period – where administrators not willing to incur personal liability for repayment of debts or satisfaction of liabilities arising under the proposed funding agreement to the extent that the property of the company in administration is insufficient to satisfy those debts and liabilities – application granted CORPORATIONS – application for directions under s 90-15 of the Insolvency Practice Schedule (Corporations) as to whether the administrators would be justified in entering into the proposed funding agreement – where proposed funder is sole shareholder and possibly is secured creditor and security would apply to advances under the funding agreement – application granted

Legislation: Corporations Act 2001 (Cth) ss 435A, 439A, 443A, 443D, 447A Corporations Act 2001 (Cth) Sch 2, Insolvency Practice Schedule (Corporations) s 90-15 Federal Court of Australia Act 1976 (Cth) s 37AF