In the decision, Dunmore Lang Colleges Ltd were seeking to wind up CII Group Pty Ltd (CII). Despite CII delaying the progress of proceedings by asserting it was solvent, voluntary administrators were appointed the day before hearing for a winding up application on the basis that the company was insolvent or likely to become involvement.
Shortly after their appointment, the voluntary administrators applied under section 440A of the Corporations Act 2001 (Cth) to adjourn the winding up hearing, arguing that the voluntary administration process could potentially deliver a better outcome for creditors than an immediate winding up of the company.
In an affidavit, a voluntary administrator stated that, in a conversation immediately prior to…