FEDERAL COURT OF AUSTRALIA

Uni-Aire Security Pty Ltd (Administrators Appointed) ACN 085 430 619, in the matter of Uni-Aire Security Pty Ltd (Administrators Appointed)

ACN 085 430 619 [2006] FCA 1423

UNI-AIRE SECURITY PTY LTD (ADMINISTRATORS APPOINTED) ACN 085 430 619, IN THE MATTER OF UNI-AIRE SECURITY PTY LTD (ADMINISTRATORS APPOINTED) ACN 085 430 619

NSD2034 OF 2006

EMMETT J

18 OCTOBER 2006

SYDNEY

IN THE MATTER OF UNI-AIRE SECURITY PTY LTD (ADMINISTRATORS APPOINTED) ACN 085 430 619 AND UNI-AIRE AIRCONDITIONERS PTY LTD (ADMINISTRATORS APPOINTED) ACN 079 894 698

THE COURT ORDERS THAT:

1.          The time for the convening period for a meeting of creditors, which ends on 20 October 2006, be extended, pursuant to section 439A(6) of the Corporations Act 2001 (Cth), for a period of 60 days, ending on 19 December 2006.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE MATTER OF UNI-AIRE SECURITY PTY LTD (ADMINISTRATORS APPOINTED) ACN 085 430 619 AND UNI-AIRE AIRCONDITIONERS PTY LTD (ADMINISTRATORS APPOINTED) ACN 079 894 698

REASONS FOR JUDGMENT

1                     On 29 September 2006, Mr Loke Ching Wong and Mr William Bernard Abeyratne (‘the Administrators’) were appointed joint and several administrators of Uni-Aire Security Pty Limited and Uni-Aire Air Conditioners Pty Limited (‘the Companies’), pursuant to s 436A of the Corporations Act 2001 (Cth) (‘the Act’). As required by s 436E of the Act, the Administrators convened meetings of the Companies’ creditors in order to determine whether to appoint a committee of creditors and, if so, to determine who are to be the committee’s members. Those meetings were held within the five business days after the administration began, as required by s 436E(2).

2                     At the meeting that was held on 6 October 2006 of the creditors of Uni-Aire Security Pty Limited, a committee of creditors was appointed. No committee of creditors was appointed in respect of Uni-Aire Air Conditioners Pty Limited at the meeting of the creditors of that company, which was convened for the same day.

3                     I have before me an application for an extension of time within which the Administrators are required to convene a second meeting of the creditors pursuant to s 439A of the Act. The evidence before me is not particularly satisfactory. However, I have been informed by the solicitor for the applicants, by a statement from the bar table, that a business of manufacturing and installing air conditioning equipment is carried on by Uni-Aire Security under the business name Uni-Aire Air Conditioners.

4                     Uni-Aire Air Conditioners Pty Limited does not trade, but is the holder of a lease over premises from which Uni-Aire Security Pty Limited conducts its business. I am informed that the business employs some 25 people and has approximately $800,000 worth of orders in hand. The business’s assets include plant valued at approximately $400,000 and stock valued at approximately $1 million. The administrators have advertised the business for sale as a going concern and I have been informed that there have been a number of responses to the advertisement and that some of the responders have indicated an interest in pursuing negotiations.

5                     The Administrators consider that it is necessary to undertake an investigation of the affairs of the Companies in order to make an appropriate assessment as to what course should be adopted in the future. In particular, they wish to investigate the option of selling the business of Uni-Aire Security Pty Limited as a going concern and would like time to negotiate with all potential purchasers. They would also like the opportunity to permit the directors of the Companies to consider putting forward a Deed of Company Arrangement. The committee of creditors of Uni-Aire Security Pty Limited have been informed of this application and have indicated support for an extension of time before convening the meeting required by s 439A, at which the creditors will be called upon to resolve either that the company execute a Deed of Company Arrangement, that the administration end or that the company be wound up.

6                     In the absence of any opposition from the creditors, it seems to me to be appropriate to extend the time within which the Administrators are required to convene a second meeting of creditors. Accordingly, I propose to make an order pursuant to s 439A(6) extending the period within which the second meeting must be convened by 60 days.

Associate:

Dated: 2 November 2006