Judge stalls rushed sale process

A plan to quickly offload the assets of ASX-listed Traffic Technologies Limited spat a tyre this morning after a judge hit the brakes on the proposed timetable, declaring that the plan looked like an attempt to screw secureds.

“Time and time again we see administrators entering into agreements without regard to due process.” Federal Court judge Stewart Anderson.

“The administrators want all this to happen 7 days? That’s unreasonable and won’t be happening,” Federal Court judge Stewart Anderson said when Melbourne silk Jonathan Evans KC asked the court to approve an ambitious timetable for an asset sale proposed by administrators Glenn Franklin and Jason Stone of PKF.

“You’re asking me to press this matter on with haste which is not justified on the affidavit material that has been filed,” the judge said.

After being appointed in April Franklin and Stone conjured a plan to sell the assets of the Traffic Technologies business in a single line and came to court hoping to get orders facilitating a rapid conclusion approved.

Sending those hopes careening off the road Justice Anderson told Evans that the orders looked like an attempt to shut out the secured creditors and he wouldn’t be approving a rushed timetable when only the senior secured creditor had appeared today and none of the other secured creditors had even filed a submitting appearance.

“They’re secured for a reason. They’re entitled to be heard and not railroaded into a trial in 7 days,” the judge said.

Evans tried his best, saying that the secureds had been given notice but to no avail and suggested he seek further instructions from his client PKF and Traffic Technologies’ administrator Glenn Franklin.

Mr Franklin’s here in court today. He’s heard what your honour has to say,” Evans told the court.

“I hope he has,” the judge replied before bemoaning what he sees as a habitual disregard exhibited by insolvency practitioners working under the time pressures imposed by Part 5A.

“Time and time again we see administrators entering into agreements without regard to due process,” the judge fumed,” before adjourning to allow Franklin and Evans time to put their ailing timetable into the pits for repairs.