Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 3)

The matter of Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 3) was heard by the Federal Court of Australia. The primary dispute involved the extension of the period for administrators to notify lessors of property, as well as the personal liability of the administrators under sections 443A(1)(c) and 443B(2) of the Corporations Act 2001 (Cth). The administrators sought relief from their personal liability concerning the leased property during a specific period following the commencement of the administration.

The court was required to determine whether the administrators' efforts to manage and negotiate with lessors, particularly in relation to aircraft leases, were sufficient to warrant an extension of the notification period. Additionally, the court had to decide whether the administrators could be held personally liable for any actions taken during the administration period, specifically regarding the aircraft leased property and other leased property.

The court found that the administrators had made extensive efforts to identify and negotiate with lessors. Given the complexity and protracted nature of the negotiations, particularly concerning the aircraft leases, the court decided to extend the period during which the administrators could be held personally liable. The court also granted relief to the administrators from personal liability for actions taken between specific dates, allowing them more time to negotiate with lessors and determine the future use of the leased property. The court emphasised the importance of these negotiations for the ongoing viability of the business.

The orders of the court included varying the orders made on 24 April 2020, extending the period for personal liability exemption for the administrators, and requiring the administrators to notify relevant parties of the court's orders. The court also allowed any interested parties to apply to vary or discharge the orders and directed the administrators to bear the costs of the application.