Harrison's Case: Will the Court Grant and Extension to the Covening Period?

Decent Essays
In the matter of Harrisons Pharmacy Pty Limited:
Will Courts Readily Grant Extension to the Convening Period?


In Harrisons Case, the Federal Court of Australia considered the administrators’ application to extend the convening period. This case comment will discuss the various principles that contribute to the Court’s discretion in granting extensions, and how the application of those principles in other cases yield different results.


On 25 March 2013, administrators were appointed. The secured creditor appointed receivers to control over substantially all of the companies’ assets. Harrisons Pharmacy comprises a group of companies that operate small to large pharmacies, "bulk billing", medical and pharmaceutical supply contracts and a wellness spa. The administrator sought the Court’s permission to extend the convening period by six months. Although the administrators brought the proceedings, the receivers supported it. The central issue in Harrisons Case is whether and for what period the Court should exercise its discretion to extend the convening period. The Court was satisfied and granted extension to the convening period.

Balancing Act

Harrisons case demonstrates that the Courts will strike a balance between the expectation that the administration will be relatively quick and the requirement that undue speed should not prejudice creditors’ return. The administrators adduced evidence of a complex corporate
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