Preston, in the matter of Qenos Pty Ltd (Administrators Appointed) [2024] FCA 461

Federal Court of Australia

Preston, in the matter of Qenos Pty Ltd (Administrators Appointed) [2024] FCA 461 File number(s): VID 333 of 2024

Judgment of: BUTTON J

Date of judgment: 29 April 2024

Date of publication of reasons 3 May 2024

Catchwords: CORPORATIONS – voluntary administration of companies in the Qenos group which operates Australia's largest plastics and chemical manufacturing business, and which is important to the continued production and supply of natural gas in South Eastern Australia – application by Administrators for orders under s 447A of the Corporations Act 2001 (Cth) (the Act) and s 90-15 of Sch 2 to the Act (Insolvency Practice Schedule (Corporations)) – where Administrators have caused members of the Qenos group of companies to enter into a facility agreement under which the companies may borrow up to $200 million to fund the administration – where Administrators seek orders that entry into the facility agreement was justified and limiting their personal liability pursuant to ss 443A and 443D of the Act – whether creditors' interests served by entry into the facility agreement – whether the public interest in the continued operation of the Qenos group of companies is a factor to be taken into account in making orders under s 447A of the Act – where both the interests of creditors and the public interest support entry into the facility agreement – where Administrators were justified in entering into the facility agreement – where it is appropriate that Administrators be relieved of personal liability – application granted

Legislation: Corporations Act 2001 (Cth) ss 443A, 443D, 447A, Sch 2 Insolvency Practice Schedule (Corporations) s 90-15 Federal Court of Australia Act 1976 (Cth) ss 37AF, 37AG