Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 2) [2020] FCA 717

FEDERAL COURT OF AUSTRALIA

Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 2) [2020] FCA 717 File number: NSD 464 of 2020

Judge: MIDDLETON J

Date of judgment: 20 May 2020

Date of publication of reasons: 26 May 2020

Catchwords: CORPORATIONS – application under r 9.05 of the Federal Court Rules 2011 (Cth) to join a person to existing proceedings – where common issues have arisen and will arise CORPORATIONS – application under s 1322(4)(a) of the Corporations Act 2001 (Cth) to cure insufficient notice of first creditors meeting in accordance with s 436E of the Corporations Act 2001 (Cth) – whether notice sent to creditors in accordance with rr 75-225(1) and 75-15 of the Insolvency Practice Rules (Corporations) 2016 is invalidated by reason of insufficient notice – where insufficient notice cured by s 1322(4) of the Corporations Act 2001 (Cth) – where the Court has an unfettered discretion under s 1322(6) to make an order under s 1322 of the Corporations Act 2001 (Cth) CORPORATIONS – holding creditors meetings by video-link or telephone, rather than in person – 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) – electronic notice to creditors CORPORATIONS – incorporation of entity into existing committee of inspection – whether Divs 75 and 80 of the Insolvency Practice Rules (Corporations) 2016 (Cth) and Div 75 of the Insolvency Practice Rules (Corporations) 2016 (Cth) are to operate as if the requirement in rr 80-10 and 80-15 of the Insolvency Practice Rules (Corporations) 2016 (Cth) be dispensed with CORPORATIONS – extension of convening period for meeting of creditors pursuant to s 439A(6) of the Corporations Act 2001 (Cth) – legal principles – whether appropriate case for extension of convening period CORPORATIONS – limitation of personal liability of administrators – whether administrators' personal liability can be limited with respect to certain agreements of the company under administration – whether administrators' personal liability can be excluded with respect to repayment of monies advanced by the Commonwealth of Australia under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (Cth) – whether administrators' personal liability can be limited for intercompany loans – legal principles concerning ss 443A and 447A of the Corporations Act 2001 (Cth) CORPORATIONS – issuing of conditional credits to customers of a company in administration – whether liabilities incurred with respect to obligations arising out of, or in connection with, the issuing of conditional credits are in the nature of debts incurred by administrators – personal liability of administrators CORPORATIONS – company report where there is overlap in the business of related companies under administration – where companies under administration are party to a deed of cross guarantee and prepare financial reports on a consolidated basis – whether one report can be prepared for companies that are party to a deed of cross guarantee CORPORATIONS – application for leave to members of a committee of inspection to derive a profit or advantage from external administration – where arms-length transactions during administration with creditors who are members of the committee of inspection is in best interests of creditors CORPORATIONS – common bank accounts – whether separate administration accounts required