FEDERAL COURT OF AUSTRALIA
Rhort in his capacity as Administrator of Gold Search International Pty Ltd (Administrator Appointed) in the matter of Gold Search International Pty Ltd [2012] FCA 473
IN THE FEDERAL COURT OF AUSTRALIA | |
iN THE MATTER OF GOLD SEARCH INTERNATIONAL PTY LTD
RICHARD TRYGVE RHORT IN HIS CAPACITY AS ADMINISTRATOR OF GOLD SEARCH INTERNATIONAL PTY LTD (ADMINISTRATOR APPOINTED) Applicant |
DATE OF ORDER: | |
WHERE MADE: |
THE COURT ORDERS THAT:
1. Pursuant to s 447A(1) of the Corporations Act, the time provided by s 439B(2) for resuming the adjourned meeting of creditors of Gold Search International Pty Ltd held on 9 March 2012 be extended to 17 September 2012.
2. Richard Trygve Rhort shall inform creditors of the company at least five business days before the meeting by:
(i) Sending by ordinary pre-paid post notice of the meeting to each creditor’s last known address; and
(ii) Placing an advertisement with details of the meeting in The Australian newspaper.
3. Liberty is granted to any person to apply to vary these orders on 48 hours’ notice to the administrator.
4. The costs of the application be costs in the administration of the company.
The Court declares that the meeting of creditors of Gold Search International Pty Ltd on 9 March 2012 has not terminated but is to be treated as having been adjourned to 17 September 2012.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
VICTORIA DISTRICT REGISTRY | |
GENERAL DIVISION | VID 347 of 2012 |
iN THE MATTER OF GOLD SEARCH INTERNATIONAL PTY LTD
BETWEEN: | RICHARD TRYGVE RHORT IN HIS CAPACITY AS ADMINISTRATOR OF GOLD SEARCH INTERNATIONAL PTY LTD (ADMINISTRATOR APPOINTED) Applicant
|
JUDGE: | MURPHY J |
DATE: | 8 MAY 2012 |
PLACE: | MELBOURNE |
REASONS FOR JUDGMENT
1 In this matter Richard Trygve Rhort, the duly appointed administrator of Gold Search International Pty Ltd seeks an order pursuant to s 447A of the Corporations Act 2001 (Cth) (“the Act”) to extend the time for the adjourned meeting of creditors from the time prescribed in s 439B(2) of the Act, until l7 November 2012.
2 I have determined to allow an extension of time for four months, which is a shorter period than requested, and to grant leave to any person affected by these Orders to apply to vary them on 48 hours’ notice to the administrator.
3 In his affidavit sworn 7 May 2012 the administrator deposes as follows:
(a) That the company holds mining exploration licences and mining tenements in Blackwood Victoria which may contain gold to a value of $90m to $100m. However I note this assessment is necessarily uncertain as no valuation such as by JORC report can be performed because of the company’s lack of funds;
(b) The exploration licences and mining tenements are contingent assets because they are of value only if the company has sufficient funds to exploit them;
(c) The company’s liabilities are estimated at approximately $5.6m;
(d) He has received interest in the purchase of the company’s assets from potential buyers in Singapore or China and Canada, who are presently conducting further due diligence checks. No formal offer to purchase the company’s assets has been received.
4 I have determined to extend the time for the second creditors’ meeting so as to allow the potential purchasers time to conduct the detailed due diligence and perhaps even mining assays which may be necessary, and to allow the administrators time within which to receive and consider an offer for the purchase of the assets, if an offer is to be made.
5 It appears that an extension of time is likely to enhance the return for unsecured creditors, and I have no evidence of any impact of the extension on a person whose claim is affected: see Re Ansett Australia Limited (No 3) (2002) 115 FCR 409. In the administrator’s opinion if the company is now placed into liquidation it appears that the creditors will receive less than if time is allowed for an offer to be made. In this regard one question which the administrator is seeking legal advice about is whether the exploration licences and mining tenements revert to the Crown if the company is in liquidation.
6 Any offer reflecting the value of the assets is likely to discharge the company’s liabilities in full and control of the company may then revert to the directors without the company’s affairs being wound up.
7 I make the following orders:
1. Pursuant to s 447A(1) of the Corporations Act, the time provided by s 439B(2) for resuming the adjourned meeting of creditors of Gold Search International Pty Ltd held on 9 March 2012 be extended to 17 September 2012.
2. Richard Trygve Rhort shall inform creditors of the company at least five business days before the meeting by:
(i) Sending by ordinary pre-paid post notice of the meeting to each creditor’s last known address; and
(ii) Placing an advertisement with details of the meeting in The Australian newspaper.
3. Liberty is granted to any person to apply to vary these orders on 48 hours’ notice to the administrator.
4. The costs of the application be costs in the administration of the company.
The Court declares that the meeting of creditors of Gold Search International Pty Ltd on 9 March 2012 has not terminated but is to be treated as having been adjourned to 17 September 2012.
I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Murphy. |
Associate:
