The voluntary administrators of Union Standard International Group Pty Limited (USGFX), BRI Ferrier (NSW) Pty Ltd, have been granted an Order by the Federal Court of Australia to extend the convening period until the 18th of September 2020.
Under the Australian Corporations Act 2001, the administrators of a company under administration are required to convene a meeting of the entity’s creditors within a fixed period.
Typically, this is 20 business days starting from the day after the administration begins. However, as is the case with BRI Ferrier, administrators can apply to have the convening period extended.
According to court documents filed through the Federal Court of Australia by Finance Magnates, on Monday, BRI Ferrier filed an application seeking to extend the convening period until September. The administrators also applied for an order to allow them the ability to further extend the convening period any time before it expires.
Furthermore, Andrew Cummins and Peter Krejci of BRI Ferrier applied for an order granting the administrators the ability to convene the second meeting of the creditors any time before or within five business days after the end of the convening period.
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Today, Justice Stewart of the Federal Court of Australia granted the orders BRI Ferrier applied for.
Background on USGFX administration
The developments revealed in the court documents follow on from USGFX entering into voluntary administration earlier this month. As Finance Magnates broke the news, Andrew Cummins and Peter Krejci of BRI Ferrier were appointed as administrators on the 8th of July 2020.
USGFX is an Australian-headquartered foreign exchange and CFD broker. In the statement from the company earlier this month, the broker said it had gone into voluntary administration to facilitate its restructuring so that it can continue to provide financial services to its clients.
The FX broker largely pointed the finger at the local regulator in the country, the Australian Securities and Investments Commission (ASIC), for harming the company’s reputation in ongoing legal proceedings despite having “no substantial allegations.”
Following the company entering into administration, ASIC suspended the license of the broker, and the Board of Union Standard International Group Holdings (USG), revealed that it would be moving its headquarters out of Sydney and into London.