In the matter of Global Bionic Optics Limited (administrator appointed); FM-Assets Pty Limited (administrator appointed); Infinityoptix Pty Limited (administrator appointed) [2014] NSWSC 819 (18 June 2014)

Last Updated: 11 December 2014

Supreme Court New South Wales

Case Title:	In the matter of Global Bionic Optics Limited (administrator appointed); FM-Assets Pty Limited (administrator appointed); Infinityoptix Pty Limited (administrator appointed)
Medium Neutral Citation:	[2014] NSWSC 819
Hearing Date(s):	Wednesday, 18 June 2014
Decision Date:	18 June 2014
Jurisdiction:	Equity Division - Corporations List
Before:	Brereton J
Decision:	Time for convening s 439A meeting of creditors extended
Catchwords:	CORPORATIONS - voluntary administration - creditor's meeting - extension of convening period
Legislation Cited:	(Cth) Corporations Act 2001, s 439A, s 447A
Category:	Principal judgment
Parties:	Trent Andrew Devine and Andrew John Spring in their capacity as administrators of Global Bionic Optics Ltd (administrators appointed) (ACN 108 643 858), FM-Assets Pty Ltd (administrators appointed) (ACN 140 422 251) and Infinityoptix Pty Ltd (administrators appointed) (ACN 133 454 001) (plaintiff)
Representation
- Counsel:	Counsel: D Hughes (plaintiff)
- Solicitors:	Solicitors: Swaab Attorneys (plaintiff)
File Number(s):	2014/181492

JUDGMENT - EX TEMPORE

1. HIS HONOUR: By originating process, leave to file which is sought today, the administrators of Global Bionic Optics Limited, FM-Assets Pty Limited and Infinityoptix Pty Limited seek an order pursuant to (Cth) Corporations Act 2001, s 439A(6), extending the convening period for the meeting of creditors of those companies referred to in s 439A(1) and (5) and pursuant to s 447A, allowing the meeting of creditors to be held at any time in the extended convening period or no later than five business days after the extended convening period. But for an order under s 439A(6), the convening period will expire tomorrow 19 June 2014.

2. The administrators were appointed on 21 May 2014 and seek an extension of about seventy five days to 29 August 2014 on account of the time that they think will be required to implement an ordinary and orderly disposal of the assets, the time needed for proper assessment of a potential proposal for a deed of company arrangement, and difficulties in securing access to corporate financial records including those of offshore subsidiaries.

3. So far as the administrators are presently aware, the companies have no secured creditors. There are no proceedings pending against the companies. There are no lessors of premises occupied or plant used by the companies. There are four employees, of whom three are directors and only one is a non-related employee. The administrators have informed ASIC of their intention to seek an extension and there has been no response. The two major unsecured creditors, who together are owed approximately sixty eight per cent of the total unsecured debt, do not oppose the application for an extension.

4. The major creditors have foreshadowed a proposal for a deed of company arrangement, but it is not sufficiently mature to enable it properly to be evaluated. The administrators have not yet been able to establish with any fidelity the true asset position of the companies. However, most of the assets seem to compromise intellectual property including patents, the value of which will be difficult to ascertain in the absence of a sale process.

5. On the material before the Court, it does not seem that there will be any significant prejudice occasioned to any person except - perhaps, the single arms length employee - from a protraction of the administration for the period sought, whereas that course will enable the administrators to make a proper assessment of the various options and an informed recommendation to creditors when the meeting is, in due course, convened.

6. The Court orders that:

(1) Upon the undertaking of Terry Paul Sperber to pay the appropriate filing fees, the administrators of Global Bionic Optics Limited, FM-Assets Pty Limited and Infinityoptix Pty Limited have leave to file an originating process in the form initialled by me, dated this day and placed with the papers.

(2) The originating process to be returnable instanter.

(3) Service of the originating process be dispensed with.

(4) The convening period for the meeting of the creditors of Global Bionics Optics Limited, FM-Assets Pty Limited and Infinityoptix Pty Limited under Corporations Act, s 439A(1), and (5) be extended to 29 August 2014.

(5) Pursuant to Corporations Act, s 447A, the meeting of creditors of the said companies referred to in s 439A may be held at any time during or by no later than five business days after the end of the convening period so extended.

(6) The plaintiff has leave to apply for any further extension of the convening period prior to 29 August 2014.

(7) There be liberty to any person who can demonstrate sufficient interest to apply to modify or discharge the above orders on 48 hours notice to the plaintiff and the Court, any such application to be made within fourteen days after notification to such person of these orders.

(8) The administrators within two business days notify by ordinary prepaid post all creditors listed in the books and records of the said company of these orders.

(9) The costs of the application to be costs in the administration of the said companies.

7. These orders are to be entered forthwith.

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