BA Provincial Holdings Company Limited has been granted a two-month extension to wind up the company.
It follows a ruling by Master of the High Court in Lautoka Anare Tuilevuka last week as the court awaits the implementation of the company's proposed restructure of its finance.
The stay order will also allow the company to pay off unsecured creditors as part of the company's refinance plans, Mr Tuilevuka said adding that most creditors of the company supported the decision for an extension.
Mr Tuilevuka said a report by accounting firm, aliz pacific on the planned restructure of the company's finance was optimistic with a promise of recovery and the security of a bank loan that would pay off its debts.
"What the evidence shows clearly, is that while BPHCL may have substantial assets, it is at the same time commercially insolvent despite two extensions of stay already granted to the company, it is still trying to secure a bank loan to pay off its creditors.
"Obviously the company's assets are all tied up in investments or as security and are not presently realisable to pay off its debts," he said.
Mr Tuilevuka said he had earlier granted an order to wind up the company following a petition of Vodafone Fiji Limited and a Chandra Lok.
But this was followed by strong support from creditors to extend the winding up stay order ù which was later granted on February 14, 2012, and again on May 2, the ruling said.
And still, BPHCL has not settled its debts, Mr Tuilevuka said adding that the company had settled $322,421.58 in debt between January 2012 and April 2012 leaving a real debt of $804,184.36.
"These figures relate only to the company's 17 unsecured creditors whose debts are not in dispute and where arrangements are in place between the parties for settlement," he said.
The case will be called for mention on July 31.