Ferrier Hodgson, voluntary administrators for Whitcoulls' parent, REDgroup, yesterday sought High Court approval to extend the time available to consider its options.
Under the voluntary administration rules, a so-called "watershed" meeting, where creditors are advised of the state of play with the company, needs to be held five weeks after the appointment of a voluntary administrator, which would have made it March 24.
In Australia, the Federal Court extended the period within which the administrators must convene the meetings of creditors for the Australian companies to no later than September 18. A spokesman for Ferrier Hodgson said it would be up to the High Court as to how long the extension went in New Zealand.
The extension would allow the insolvency experts time to "frame the options" for the company's creditors as to what may be in their best interests, Steve Sherman, a Ferrier Hodgson partner and administrator for REDgroup, said.
"Ultimately the creditors will be asked to assess the options that we will have provided them with, and whether they consider them to be in their best interests," Sherman said.
Full story at New Zealand Herald.
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