Algeri (Administrator), in the matter of Murray & Roberts Pty Ltd (Administrators Appointed) [2022] FCA 1506

FEDERAL COURT OF AUSTRALIA

Algeri (Administrator), in the matter of Murray & Roberts Pty Ltd (Administrators Appointed) [2022] FCA 1506 File number: WAD 256 of 2022

Judgment of: BANKS-SMITH J

Date of judgment: 13 December 2022

Catchwords: CORPORATIONS - administration of Clough group of companies - application for limitation of personal liability of administrators with respect to specified classes of agreements of the companies under administration - 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) - where large and complex administration involving engineering and construction group of companies - where agreements with third parties necessary so that group may continue to operate during administration pending restructure and sale process - where administrators not willing to incur personal liability for repayment of debts or satisfaction of liabilities arising under agreements - where administrators propose to enter into new agreements with third parties with express limited recourse terms - application granted CORPORATIONS - application under s 447A of the Corporations Act 2001 (Cth) for extension of the usual five business day period under s 443B(2) for administrators to give notice to lessors of property - principles governing the power to extend time under s 447A and the power to exclude liability under s 443B(8) - where significant number of lease interests with numerous counterparties - best interests of the creditors - personal liability of administrators under s 443A(1)(c) and s 443B(2) of the Corporations Act 2001 (Cth) - whether personal liability of administrators with respect to leases should be excluded until extended date - application for extension of time and exclusion of personal liability granted CORPORATIONS - application under s 90-15 of the Insolvency Practice Schedule (Corporations) for modifications as to mechanism for voting, proofs of debt and communications with creditors - whether administrators justified in requiring creditors to register on certain software known as Halo Platform - whether administrators justified in adjudicating on the claims of creditors for voting purposes based on the material provided in the company's books and records or available to the administrators through Halo Platform - directions made CORPORATIONS - application under s 447A of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations) for modifications as to committee of inspection - where formation of a single committee of inspection proposed - members of the committee of inspection to be selected by administrators from nominations made in advance of or at the first meeting of creditors - meetings of the committee of inspection to be held by video-link - meetings to be convened by use of Halo Platform - directions made CORPORATIONS - application under s 37AF of the Federal Court of Australia Act 1976 (Cth) for suppression orders to protect confidentiality of agreements negotiated by the administrators - orders made