Long wait for Dick Smith creditors, as extension granted

Creditors of the failed Dick Smith Holdings businesses will have an extended wait before hearing the next creditors meeting, after courts on both sides of the Tasman agreed to an extension for the administrators.

The administrators, McGrathNicol partners Joesph Hayes, Jason Preston, Jamie Harris and Matt Caddy, filed applications for orders granting an extension of time, delaying the second meeting of creditors for up to six months.

Both the Federal Court of Australia and the High Court of New Zealand – in relation to DSE (NZ) Limited – have granted the requested extension, meaning the second meeting will be held 'on or before 09 August 2016'.

The second meeting had been due to be held on or before 09 February.

Dick Smith was placed into voluntary administration and receivership in early January, with the early reports from receivers Ferrier Hodgson noting that creditors are owed nearly AU$400 million, including $250 million to unsecured creditors.

Last month receivers closed 27 David Jones Electronics Powered by Dick Smith concession stores, affecting the jobs of 181 staff. The staff were predominantly part-time and casual workers.

Ferrier Hodgson is in the process of trying to find a buyer for the business. That process is expected to continue through until late February. Ferrier Hodgson says interest in the business has been high, with more than 30 parties expressing interest prior to the business being publicly offered for sale.

Ferrier Hodgson partner James Stewart said last month that the New Zealand business was profitable and was expected to be attractive to potential buyers.