Re Virgin Australia Holdings Ltd (admins apptd) (No 2)

The case involves an application by the Administrators of Virgin Australia Holdings Ltd, seeking various orders related to the administration of the company and its subsidiaries. The application was heard and decided by the Federal Court of Australia. The court was required to decide on several legal issues, including whether to cure insufficient notice of a creditors' meeting, allow meetings of creditors to be held by video-link or telephone, limit the personal liability of the Administrators, and permit the Administrators to offer conditional credits to customers. The court found that the Administrators had acted reasonably and in the best interests of the creditors in seeking these orders, and granted the relief sought. The court also emphasised the importance of supporting innovative measures that are considered appropriate by the Administrators, as long as the interests of the relevant creditors are taken into account.

The court found that the notice sent to creditors for the first meeting of creditors was insufficient, but that this could be cured under the Corporations Act. The court also found that it was appropriate to allow meetings of creditors to be held by video-link or telephone, and for notices to be sent electronically where possible. The court further found that it was appropriate to limit the personal liability of the Administrators in certain circumstances, including in relation to JobKeeper payments and intercompany loans. The court also found that it was appropriate for the Administrators to offer conditional credits to customers who were unable to take flights due to the COVID-19 pandemic. The court noted that these orders should be supported as long as the interests of the relevant creditors are taken into account, and that the administration should progress efficiently and in a timely manner as far as the circumstances permit.