Colbran, in the matter of PBS Building Pty Limited (Administrators Appointed) [2023] FCA 276

Federal Court of Australia

Colbran, in the matter of PBS Building Pty Limited (Administrators Appointed) [2023] FCA 276 File number(s): NSD 270 of 2023

Judgment of: HALLEY J

Date of judgment: 4 April 2023

Catchwords: CORPORATIONS – extension of time for convening the second creditors' meetings pursuant to s 439A(6) and s 447A of the Corporations Act 2001 (Cth) (Corporations Act) – reasons justifying extension – complex administration – balancing test – position of creditors – extension granted CONTRACT – creditor alleges unfair prejudice if extension granted without conditions – extension may deprive creditor of interim payment protections under Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) – pay now, argue later basis in SOP Act – creditor seeks undertaking that second to sixth plaintiffs (PBS Companies) will not exercise rights against creditor under SOP Act from 21 April 2023 – alternatively, creditor seeks orders for payment of any adverse adjudication determination under SOP Act into a trust account – no conditions imposed on extension CORPORATIONS – orders sought under Insolvency Practice Schedule (Corporations), being Sch 2 to the Corporations Act – directed at bank accounts of PBS Companies – financial affairs of PBS Companies inherently bound up together –flexibility and efficiency of administration – orders granted

Legislation: Corporations Act 2001 (Cth) ss 435A, 439A, 440B, 447A, 451E Insolvency Practice Schedule (Corporations), Sch 2 to the Corporations Act 2001 (Cth) Sch 2 ss 60-10, 65-5, 65-15, 65-25, 65-45 Building and Construction Industry Security of Payment Act 1999 (NSW) ss 3, 17, 22, 23, 24, 25, 32, 32B Building and Construction Industry Security of Payment Amendment Bill 2018 (NSW) Queensland Building and Construction Commission Act 1991 (Qld)