Hughes, in the matter of Vah Newco No. 2 Pty Ltd (in liq) [2020] FCA 1121

Hughes, in the matter of Vah Newco No. 2 Pty Ltd (in liq) [2020] FCA 1121

Given the interconnectedness of the Virgin Group, the appropriateness of the applicants (without identified conflict), their familiarity with the affairs of the Companies, and the creditors' overlapping interests, it is in the interest of creditors to appoint the Deloitte Administrators and to make truncation orders; dispensing with unnecessary meetings and reports and staying winding up are justified and facilitate the proposed restructure.

Parties
First Plaintiff: Richard Hughes in his capacity as liquidator of each of VAH Newco No. 2 Pty Ltd (in liquidation) and VB Investco Pty Ltd (in liquidation); Second Plaintiff: VAH Newco No. 2 Pty Ltd (in liquidation); Third Plaintiff: VB Investco Pty Ltd (in liquidation); Fourth Plaintiff: Salvatore Algeri, Vaughan Neil Strawbridge and John Lethbridge Greig
Jurisdiction
Australia
Judgment Date
30 July 2020
Procedural Posture
Corporations Law Application / Application for Leave and Ancillary Orders in Voluntary Administration
Outcome
Applications allowed
Legal Topics
Appointment of Administrators, Truncation of Administration Process, Liquidations, Voluntary Administration, Orders Dispensing With Statutory Requirements
Corporations Law Appointment of Administrators Truncation of Administration Process Liquidations Voluntary Administration Orders Dispensing With Statutory Requirements

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Parties

Richard Hughes in his capacity as liquidator of each of VAH Newco No. 2 Pty Ltd (in liquidation) and VB Investco Pty Ltd (in liquidation)

First Plaintiff

VAH Newco No. 2 Pty Ltd (in liquidation)

Second Plaintiff

VB Investco Pty Ltd (in liquidation)

Third Plaintiff

Salvatore Algeri, Vaughan Neil Strawbridge and John Lethbridge Greig

Fourth Plaintiff

Procedural Posture

Corporations Law Application / Application for Leave and Ancillary Orders in Voluntary Administration

Legal Issues

  1. 1 Whether leave should be granted for liquidators (and their partners) to be appointed as administrators under ss 436B(2)(g) and 448C(1) of the Corporations Act
  2. 2 Whether orders truncating the administration process should be made under s 447A of the Corporations Act
  3. 3 Whether winding up should be stayed under s 482 of the Corporations Act

Ratio Decidendi

Given the interconnectedness of the Virgin Group, the appropriateness of the applicants (without identified conflict), their familiarity with the affairs of the Companies, and the creditors' overlapping interests, it is in the interest of creditors to appoint the Deloitte Administrators and to make truncation orders; dispensing with unnecessary meetings and reports and staying winding up are justified and facilitate the proposed restructure.

Court Disposition

Applications allowed

Orders

  • Leave granted to Richard John Hughes, Salvatore Algeri, Vaughan Neil Strawbridge and John Lethbridge Greig to be appointed joint and several administrators of the Companies.
  • Orders made to truncate (abridge or dispense with) parts of the administration process, including dispensing with the first meeting of creditors and with further reports as to affairs.