Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) [2020] FCA 571

FEDERAL COURT OF AUSTRALIA

Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) [2020] FCA 571 File number: NSD 464 of 2020

Judge: MIDDLETON J

Date of judgment: 24 April 2020

Date of publication of reasons: 29 April 2020

Catchwords: CORPORATIONS – application under ss 443B(8) and 447A of the Corporations Act 2001 (Cth) and s 90-15 of the Insolvency Practice Schedule (Corporations) 2016 in Sch 2 to the Corporations Act 2001 (Cth) – existing laws made or authorised by Federal or State Parliaments to be adhered to and enforced by courts – restrictions on movement and behaviour of people arising from COVID-19 pandemic as a reason to apply flexibility in the application of existing laws, and exercise of a court's discretion CORPORATIONS – holding creditors meetings by video-link or telephone, rather than in person – sending notices by email – how notice of meetings required to be given under Insolvency Practice Rules (Corporations) 2016 (Cth), including rr 75-15 and 75-225(1), and under any provision in Part 5.3A of the Corporations Act 2001 (Cth), Part 5.3A of the Corporations Regulations 2001 (Cth) and the Insolvency Practice Schedule (Corporations) 2016, including in relation to meetings the subject of r 75-40(4) of the Insolvency Practice Rules (Corporations) 2016 (Cth) – reference to 'place' in rr 75-15(1)(a), 75-30(1) and 75-35(1)(a) of the Insolvency Practice Rules (Corporations) 2016 (Cth) – notice of electronic facilities for meetings under r 75-35 of the Insolvency Practice Rules (Corporations) 2016 – participating in meetings by electronic means under r 75-75 of the Insolvency Practice Rules (Corporations) 2016 – creditors who wish to participate at meetings held by telephone or audio-visual conference to lodge specific proxy forms containing the information in r 75-35(2)(b) of the Insolvency Practice Rules (Corporations) 2016 CORPORATIONS – formation of a single committee of inspection – members of the committee of inspection be selected by administrators from nominations made in advance of, or at, the first meeting of creditors – meetings of the committee of inspection to be held by video-link – members of the committee of inspection to send and receive notices by email – proposal in accordance with s 75-40 of the Insolvency Practice Schedule (Corporations) 2016 and r 75-130 of the Insolvency Practice Rules (Corporations) 2016 (Cth) as modified to be put to creditors by notice – creditors not to be permitted to object to proposal being determined without a meeting of creditors as otherwise provided for by r 75-40(2)(d)(ii) of the Insolvency Practice Rules (Corporations) 2016 (Cth) – time for creditors to respond to notice of proposal as provided for by r 75-130 of the Insolvency Practice Rules (Corporations) 2016 (Cth) – where proposal passed by creditors in accordance with r 75-130 of the Insolvency Practice Rules (Corporations) 2016 (Cth) – where proposal not passed in accordance with r 75-130 of the Insolvency Practice Rules (Corporations) 2016 (Cth) – rationale and proposal for regime regarding selection of committee of inspection, to the extent not permitted specifically by r 80-5(3) of the Insolvency Practice Rules (Corporations) 2016 (Cth) accepted CORPORATIONS – right of creditors to request information, reports or documents from external administrators under ss 70-45 and 70-50 of the Insolvency Practice Schedule (Corporations) 2016 – time in which external administrators are to respond to requests of creditors under r 70-1 of the Insolvency Practice Rules (Corporations) 2016 (Cth) – extension of time in r 70-1(2)(a) of the Insolvency Practice Rules (Corporations) 2016 (Cth) granted CORPORATIONS – extension of the period for administrators to give notice to lessors of property – principles governing the Court's power to extend time under s 443B(8) of the Corporations Act 2001 (Cth) – rationale for granting extension of time for administrators to decide whether to give notice to landlords limiting personal liability – Court to have regard to the best interests of the creditors – time in which administer may give notice to lessor under s 443B(3) of the Corporations Act 2001 (Cth) – extension of time granted for administrators to give notice to lessors of leased property – personal liability of administrators under ss 443A(1)(c) and 443B(2) of the Corporations Act 2001 (Cth) – personal liability of administrators excluded during set period