The transcript from the High Court’s decision that Holding DOCA’s are valid in Voluntary Administrations has now been released to the public.
It’s interesting to note that it only took the Court 5 minutes to make this decision.
Here is the link: http://www.austlii.edu.au/au/other/HCATrans/2018/120.html
In effect, the question now for all Voluntary Administrators, is why go to the hassle of applying to the Court to extend the convening period, when you can just ask creditors to vote in favour of a DOCA (without a promise of a return to those creditors)? Are extension applications dead?
Gleeson SC** sums it up pretty well I think (I have summarised): The creditors were given a binary choice, knowing that the Administrators had given an opinion that they need 6 more months to complete all of the preliminary work:
(1) vote to wind-up the company; or
(2) give the Administrators time.
They chose option 2. So let the creditors decide. … more to come.