VA seeking to adjourn winding up ordered to front up

Seeking to adjourn a winding up order being made against the company to which you’re appointed administrator has consequences.

“There are several matters which his Honour will wish to raise with Mr Levi, which in fairness he should be allowed an opportunity to address personally, although his Honour can raise those matters with Mr Levi’s legal representatives or, in an appropriate case, invoke the Court’s inquiry jurisdiction under the IPSC in which case they would be addressed after the determination of this application.”

Ahead of a hearing this morning of a winding up application filed in respect of Ecuadorian gold hopeful Rio Dorado Ltd in the NSW Supreme Court, Sydney insolvency practitioner David Levi filed an application for an adjournment.

As administrator of Rio Dorado Levi is seeking an adjournment so as to enable the company’s creditors to vote on a deed of company arrangement being proposed by the company’s directors, despite the fact that the winding up application is being made by a substantial creditor and three supporting creditors were sufficiently motivated to engage counsel to appear for them.

But Levi filed the adjournment application very late and for reasons that had not been ventilated prior to publication, the presiding judge Ashley Black has some issues with his application, as is revealed in an email sent to the parties by the judge’s associate earlier today.

“His Honour requests that Mr Levi be present in person, if he wishes to proceed with his application today,” the judges’ associate said.

“There are several matters which his Honour will wish to raise with Mr Levi, which in fairness he should be allowed an opportunity to address personally, although his Honour can raise those matters with Mr Levi’s legal representatives or, in an appropriate case, invoke the Court’s inquiry jurisdiction under the IPSC in which case they would be addressed after the determination of this application.”

Meanwhile, waiting to pounce is Aston Chace’s Ian Niccol, who’s provided a consent to act as liquidator in the event the winding up application is heard and succeeds. iNO will report further next week.