In the matter of Ansett Australia Limited and Mentha [2002] FCA 2

FEDERAL COURT OF AUSTRALIA

In the matter of Ansett Australia Limited and Mentha [2002] FCA 2 CORPORATIONS LAW – external administration – application under ss 447A and 447D of the Corporations Act 2001 (Cth) – directions and orders sought in respect of notice to creditors of meeting convened under s 439A of the Corporations Act 2001 (Cth) – meaning of giving written notice – whether notice of meeting in newspaper advertisements and on websites satisfies s 439A(3) of the Corporations Act 2001 (Cth) – whether reasonably practicable to send written notice to each creditor known to administrators – whether cost disproportionate to end and object to be achieved – importance of giving notice of meeting to creditors. WORDS & PHRASES – "notice", "reasonably practicable"

Corporations Act 2001 (Cth): Pt 5.3A, ss 439A(3), 439A(4), 447A Corporations Regulations 2001 (Cth): reg 5.6.12 Slivak v Lurgi (Aust) Pty Ltd (2001) 177 ALR 585 applied Marshall v Gotham Co Ltd [1954] AC 360 referred to

IN THE MATTER OF ANSETT AUSTRALIA LIMITED (ACN 004 209 410) & ORS (All Administrators Appointed) and MARK FRANCIS XAVIER MENTHA and MARK ANTHONY KORDA (As Administrators)

V 3106 of 2001 GOLDBERG J 7 JANUARY 2002 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 3106 of 2002

IN THE MATTER OF: ANSETT AUSTRALIA LIMITED

(ACN 004 209 410) & ORS

(All Administrators Appointed)

(see attached Schedule)

AND: MARK FRANCIS XAVIER MENTHA and

MARKANTHONYKORDA

(As Administrators)

Plaintiffs JUDGE: GOLDBERG J

DATE OF ORDER: 7 JANUARY 2002

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT: 1. Pursuant to s 447A of the Corporations Act 2001 (Cth) ("the Act"), Pt 5.3A of the Act is to operate in relation to each company set out in the Schedule to the reasons for judgment accompanying this order ("the said companies") as if: (a) s 439A(3) provided that the administrators must convene the meeting required to be convened in accordance with s 439A(1) by: (i) giving written notice of the meeting by post to as many of the creditors of the company as is reasonably practicable at least ten days before the meeting; (ii) causing notice of the meeting to be published in The Australian, The Australian Financial Review, The Age, The Herald Sun, The Sydney Morning Herald, The Sydney Daily Telegraph, The Brisbane Courier Mail, The Adelaide Advertiser, The Perth West Australian, The Canberra Times, The Northern Territory News, The Hobart Mercury newspapers at least ten days before the meeting. (b) s 439A(4) provided that: (i) the notice given to a creditor under s 439A(3)(a), as it operates pursuant to par 1(a) of this order, need not be accompanied by copies of the report and the statements referred to in s 439A(4); (ii) the form of proxy required by reg 5.6.31 of the Corporations Regulations 2001 (Cth) to be sent with the notice of meeting need not be sent with the notice; (iii) copies of the notice, such report, such statements and such form of proxybe postedonthewebsiteshttp://www.ansett.com.au/administrator and http://www.abl.com.au/administrator in such form that they may be down‑loaded by any person obtaining access to either of those websites; (iv) the administrators maintain a telephone hotline and deliver to any creditor, at his, her or its request, by post, facsimile transmission or e‑mail, a copy of such notice, report, such statements and such form of proxy. 2. Pursuant to s 447A of the Act, Pt 5.3A of the Act is to operate in relation to each of the said companies as if s 439B(2) provided that creditors do not have to be notified by post of the date, time and place of the adjourned meeting if: (a) there is included in the notices referred to in par 1(a)(i) and (ii) of this order a statement that creditors will not be notified by post of any adjournment of the meeting, but they will be able to ascertain the date, time and place of the adjourned meeting from the websites http://www.ansett.com.au/administrator and http://www.abl.com.au/administrator within forty‑eight hours of the adjournment of the meeting, and that those details will be published in the said newspapers on a specified date which is to be no later than 5 February 2002; (b) those details are so placed on the two websites and so published in the said newspapers. 3. The costs of this application of the plaintiffs and the Australian Council of Trade Unions and relevant unions be costs in the administration of the said companies. 4. Liberty is reserved to any party to apply for such further or other orders and directions as may be necessary to implement the terms of this order. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules