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ARTICLE · 07 FEBRUARY 2024

Complex but critical: Administrators given time to decide on convoluted leasing arrangements

Corrs Chambers Westgarth
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Discusses recent case where administrators successfully obtained orders modifying the operation of s443B Corporations Act.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Alicia Salvo
Alicia Salvo
Amy Yu
Amy Yu
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In Re Tucker, Quintis Leasing Pty Ltd [2023] FCA 1673, the administrators of a company successfully obtained orders from the Federal Court modifying the operation of section 443B of the Corporations Act 2001 (Cth). The Court extended the deadline for the company to give notice regarding the exercise of its rights in relation to leased property, and extended the period in which the administrators were not personally liable for rent in respect of that property.

Key Takeaways

  • Administrators may be required to act quickly after their appointment to protect the interests of creditors. This may include applying for an urgent hearing to modify the operation of the usual statutory rules, such as the decision period for leased property.

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