Key Highlights

  • The administrators of Paradigm Biopharmaceuticals applied to the Supreme Court of Western Australia to extend the second creditors' meeting convening period by up to three months.
  • The court hearing is listed for 27 October 2026, and the extension has not yet been granted.
  • The company paid US$348,900.38 to redeem 290,993 convertible notes held by Obsidian Global GP, LLC, leaving 2,834,715 notes outstanding.

The voluntary administrators of Paradigm Biopharmaceuticals Limited (ASX:PAR) (Administrators Appointed) have applied to the Supreme Court of Western Australia to extend the convening period for the second meeting of creditors by up to three months. Separately, the company has paid US$348,900.38 to redeem a further 290,993 convertible notes held by Obsidian Global GP, LLC. Both announcements were authorised by the administrators, Christopher Pattinson and Hayden White of FTI Consulting.

The administrators were appointed on 29 September 2026 and the first meeting of creditors was held on 9 October 2026. Under the Corporations Act, the second meeting must ordinarily be convened within 20 Business days of appointment and held within five business days after that period ends, unless the court orders otherwise. The current deadline for the voluntary administrators' report to creditors is on or before 27 October 2026, and for the second meeting on or before 3 November 2026.

The court hearing on the application is listed for 27 October 2026. The extension requires court approval and has not yet been granted. If it is refused, the second meeting must be convened by 27 October 2026. The announcement does not set new dates, saying only that the extension sought is up to three months.

Why more time is sought

The administrators say they need additional time to receive and assess a board-led Recapitalisation proposal, to progress proposals from interested parties in the sale process, to complete their investigations into the company's affairs and to obtain independent analysis of the results of the Phase 3 PARA_012 knee osteoarthritis trial. They state that without an extension there would be no proposals ready to put to creditors, and they would therefore have to recommend that the company be wound up.

The administrators add that the outstanding matters may be resolved sooner than three months and that they still expect to issue their report and convene the second meeting in the coming weeks. They will provide an update in the week after the court determines the application, including any orders made. None of the proposals described has been accepted or approved, and the announcement does not disclose their terms.

Convertible note redemption

In the second announcement, the administrators said 290,993 convertible notes held by Obsidian Global GP, LLC were redeemed and cancelled on completion of a cash payment of US$348,900.38, which the company puts at approximately A$500,000. After the redemption, 2,834,715 notes remain outstanding.

The Redemption was made under the Convertible Securities Agreement and Share Placement Agreement dated on or about 1 July 2025, as varied by a Deed of Variation dated on or about 29 April 2026. The arrangement is secured by a general security agreement over the company's assets. The release describes this as a further redemption and does not give figures for earlier redemptions.

Next steps

The next steps stated in the announcements are the Supreme Court of Western Australia hearing on 27 October 2026 and the administrators' update in the week that follows. Whether Paradigm Biopharmaceuticals (ASX:PAR) is recapitalised, sold or wound up has not been determined, according to the announcements, which refer to the court's decision, the proposals the administrators receive and the second meeting of creditors.