Jeanswest Corporation Pty Ltd

On Wednesday, 15 January 2020, James Stewart and Peter Gothard of KPMG were appointed as Joint and Several Administrators (“the Administrators”) of Glorious Sun (Australia) Pty Ltd, Glorious Sun Corporate Services Pty Ltd, Jeanswest Investments (Australia) Pty Ltd, Jeanswest Wholesale Pty Ltd and Jeanswest Corporation Pty Ltd (trading as “Jeanswest”) (collectively “the Companies”) by the respective boards of directors.

Voluntary administration is a statutory process designed to provide for the business, property and affairs of an insolvent company to be administered in a way that maximises the chances of the company continuing in existence, or if that is not possible to provide for a better return for a company's creditors and members than if the company was immediately wound up.

At this stage, the Administrators intend to continue to trade the Companies.

The Administrators have given notice that a concurrent meeting of the creditors of the Companies will be held on Tuesday, 28 January 2020 at The Business Centre, Collins Square, Level 6, Tower 2, 727 Collins Street, Melbourne, VIC 3008 at 11.00am (AEDT), in accordance with Section 436E of the Corporations Act 2001 (“the Act”). The purpose of this meeting was to allow creditors to determine:

• whether a committee of inspection should be appointed; and
• to consider the appointment of an alternative administrator should such a resolution be put before the meeting.

The Administrators advised the creditors of the Companies present at the first meeting of creditors that the Administrators may make an application to the Federal Court of Australia (“Federal Court”) to extend the convening period for the second meeting of creditors.

Pursuant to Section 439A(6) of the Act, an extension of the convening period for the second meeting of creditors of the Companies was granted by the Federal Court on 10 February 2020. In accordance with the order, the second meeting of creditors must be convened by 1 June 2020 and will be held on or before 8 June 2020. A report to creditors pursuant to the Act, together with a notice of meeting will be sent to all known creditors of the Companies at least five business days prior to the second meeting of creditors.

The Administrators consider the extension is in the best interest of creditors and necessary to maximise the realisable value of the assets and Companies.

Information and circulars for creditors.

Court directions proceedings and documentation relating to this matter.

The Australian Securities & Investments Commission provides resources on insolvency for directors, practitioners, employees, creditors and investors.

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