The Supreme Court of New South Wales awarded a personal costs order against voluntary administrators appointed on the afternoon before the hearing of an application to wind up CII Group Pty Ltd (In Liquidation) ACN 106 253 310 (CII) for applying to adjourn the hearing pursuant to section 440A(2) of the Corporations Act 2001 (Cth) (Act).
Justice Black’s decision is a cautionary tale for appointees that fail to adequately verify the merits of a voluntary administration prior to an imminent winding up application, that the standard for the Court to be satisfied to grant an adjournment sought under s 440A(2) of the Act requires a “sufficient possibility”, and not speculation, that creditors of the defendant-company would be…
