Federal Court of Australia

Cooper (Administrator) in the matter of Merit Group Australia Pty Ltd [2026] FCA 746

ORDERS

THE COURT ORDERS THAT:

1.    Any document to be filed in this matter which has been prepared using Generative Artificial Intelligence (Gen AI), or in which Gen AI has been used in any way, is to comply with ‘General Practice Note (GPN-AI)’. The parties attention is drawn in particular to cl 4.11, which provided that the document is to:

(a)    disclose the fact that Gen AI has been used in the preparation of the document at the beginning of the document; and

(b)    identify where in the document Gen AI has been used, and if the whole of the document, it is to state that fact.

2.    The plaintiff’s solicitors are to write to Cosmic Realm Co Ltd, such correspondence to be sent by email marked for the attention for Mr Li Wei Bin (“Leo”), informing Mr Li Wei Bin that this matter has been adjourned to 11:00am (ACST) on Monday 1 June 2026.

3.    The correspondence in Order 2 herein is to be sent by on or before 5:00pm ACST on Friday 22 May 2026.

4.    Without limitation, the correspondence referred to in Order 2 herein is to advise Mr Li Wei Bin and Cosmic Realm Co Ltd that they are to attend the next case management hearing or advise the solicitors for the voluntary administrators that Cosmic Realm Co Ltd no longer asserts the appointment of the voluntary administrators is invalid.

5.    In the event Mr Li Wei Bin does not comply with order 4 herein, on the next occasion, the Court will set a timetable for hearing.

6.    The correspondence in Order 2 is to also advise Mr Li Wei Bin and Cosmic Realm Co Ltd that:

(a)    in the event Mr Li Wei Bin does not appear in person or by solicitors at the next case management hearing; and/or

(b)    does not advise the voluntary administrators’ solicitors that Cosmic Realm Co Ltd no longer asserts the invalidity of the appointment of the voluntary administrators; and

(c)    if the Court proceeds and determines that the appointment of the voluntary administrators is valid

Mr Li Wei Bin is at risk of an order that he pay personally the voluntary administrators’ cost of this matter on an indemnity basis.

7.    The matter is listed for a case management hearing at 11.00am (ACST) on Monday 1 June 2026.

8.    Cosmic Realm Co Ltd has leave to appear at the adjourned case management hearing, either by Mr Li Wei Bin or its other authorised representative including solicitors, by AVL.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

Ex tempore, settled from transcript

O’SULLIVAN J

1    This application is brought by the deed administrator of Merit Group Australia Pty Ltd (subject to a Deed of Company Arrangement) for a declaration that the voluntary administrators have been validly appointed.

2    The application is brought because a company, known as Cosmic Realm Co Limited, a foreign company, contends it is a shareholder in Merit Group, and that the appointment of the voluntary administrators is invalid.

3    There was no appearance for Cosmic Realm at the first case management hearing in this matter on 12 May 2026. On that occasion orders were made requiring the solicitors for Cosmic Realm to file a notice of acting forthwith, and for the deed administrator to serve those orders on those solicitors.

4    The matter returned for a case management hearing today. The solicitors for Cosmic Realm attended and informed the Court they were no longer instructed.

5    This is an entirely unacceptable state of affairs on the part of Cosmic Realm.

6    Unless Cosmic Realm confirms it does not challenge the validity of the appointment of the voluntary administrators, the deed administrator has no option but to press the application for a declaration as to the validity of the appointment of the voluntary administrators, with the consequent costs that will necessarily involve.

7    Those costs are money which will not be available to the company’s creditors. Accordingly, I will direct the solicitors for the deed administrator to write to Mr Leo Li, whom I am told is a director of Cosmic Realm, to be sent by email, providing a copy of the orders to be made today, as well as the orders on the last occasion, and informing Mr Li that if Cosmic Realm does not withdraw any allegation that the voluntary administrators have not been validly appointed, the Court will proceed to hear and determine that question.

8    If the Court determines that question in favour of the voluntary administrators, the Court will consider the question of whether Mr Li personally, or any other director of Cosmic Realm, should pay the costs of the hearing on an indemnity basis.

Associate:

Dated:    2 July 2026