Courts won't rubberstamp an administrator's application to extend the convening period

Key Points:

Six month extensions to convening periods should not be seen as a fait accompli, particularly if the administrator's application is opposed.

There is a commonly held belief that courts will readily grant an administrator's application for an extension to the convening period. This might have been true once, but it is fast turning into an urban myth, judging by two recent decisions in the Federal Court.

While the two cases approached the issue in a different way, and had contrasting results, they both suggest courts will ask some searching questions of administrators seeking an extension, and examine the factual matrix carefully.

Application granted: In the matter of Harrisons Pharmacy Pty Limited (Administrators Appointed) (Receivers and Managers Appointed) [2013] FCA 458