The Australian Competition and Consumer Commission has instituted new proceedings in the Federal Court against Advanced Medical Institute Pty Limited (administrators appointed) and AMI Australia Holdings Pty Ltd (administrators appointed) (collectively referred to as AMI).
The ACCC alleges AMI has failed to advise existing and potential patients that it is in administration, is insolvent and may not be able to provide goods and services after determination of the administration period.
The ACCC further alleges that AMI has wrongly accepted payments in advance for treatments when there is a real risk that AMI will not be able to continue to supply its treatments to patients and that patients will not receive refunds claimed by them, after the conclusion of its administration.
AMI was placed into administration on 22 December 2010, the day after the ACCC instituted proceedings alleging the companies had engaged in unconscionable conduct towards consumers. Those proceedings are separate and still on foot.
Since December 2010, the period of administration has been extended by the court on two occasions. Additionally, on 17 May 2011, at the second meeting of creditors, the creditors extended the administration to 20 July 2011.
An interlocutory hearing has been scheduled for Friday, 10 June 2011 before Justice North in the Federal Court in Melbourne to hear the ACCC’s application for leave to proceed and for interlocutory injunctions. The ACCC is seeking injunctions:
- requiring disclosure by AMI of the administration status of the companies and its potential impact on contractual arrangements to consumers and patients, and
- to restrain AMI from accepting payment for goods and services which are to be provided by AMI or a related person after 20 July 2011, or the date upon which AMI’s second meeting of creditors is reconvened, whichever is the sooner.