Insolvency practitioners beware: Court denies application to extend … – Gilbert + Tobin

Introduction

Australian insolvency practitioners have long considered that the Court will take a liberal approach to granting an extension to the period in which the second meeting of creditors must be convened under section 439A(6) of the Corporations Act 2001 (Cth) (the Act). Indeed, there is ample case law where courts have granted extensions to the convening period, with some extensions even being granted on the papers. Out of the 30 judgments published since the beginning of 2022 in respect of applications made to the Federal Court under section 439A(6) of the Act, in only one application has the Court declined to extend the convening period.

The decision in Frisken, Xpress Transport Solutions Pty Ltd (Receivers and Managers Appoint…