Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 8)

This case involves an application brought by Broad Peak Investment Advisers Pte. Ltd and Tor Investment Management (Hong Kong) Ltd (the Applicants) against the administrators of Virgin Australia Holdings Ltd (the Administrators). The Applicants sought various orders, including the dismissal of an interlocutory process filed by the Administrators, the appointment of a facilitator to assist in providing information to creditors, and the disclosure of certain confidential documents. The court was required to decide whether the Administrators had acted within their powers and whether the Applicants were entitled to the relief sought.

The court found that the Administrators had acted within the scope of their wide statutory powers under the Corporations Act 2001 (Cth). The Administrators had entered into a sale and implementation deed with Bain Capital, which was consistent with their duty of independence and impartiality in preparing their report and making recommendations to creditors. The court held that the Administrators had not impermissibly denied the supremacy of the Second Meetings of creditors to determine the fate of the company as required by Pt 5.3A of the Act. The court also found that the Applicants had not demonstrated a need for a facilitator to assist in providing information to creditors prior to the second meeting of creditors. The court held that the extent to which it should direct an administrator in voluntary administration was limited, and that the responsibilities of administrators in preparation for and at second meetings of creditors were primarily to allow a reasonable opportunity for informed debate and to conduct the meeting in a proper manner and according to law.

The court dismissed the Applicants' application and ordered the Applicants to pay the Administrators' costs of the interlocutory process. The court also made orders for the confidentiality of certain documents and for the Administrators to take reasonable steps to notify creditors and the Australian Securities and Investments Commission of the court's orders. The court held that the Administrators had acted in good faith and in a reasonable manner, and that the Applicants had not demonstrated a need for the relief sought. The court held that the important matter was for the creditors to be given all the necessary information and have time to consider that information before the meeting of creditors.