Freeman, in the matter of Regional Express Holdings Limited (administrators appointed) (No 3) [2024] FCA 1394

Freeman, in the matter of Regional Express Holdings Limited (administrators appointed) (No 3) [2024] FCA 1394

Orders granted to extend convening period to 30 June 2025, limit administrators’ personal liability under Commonwealth Finance and Security Agreements, and provide judicial advice that entry into and performance of those agreements is justified, as these measures are in creditors’ and stakeholders’ interests, further administration objectives, are supported by funding arrangements, and do not unduly prejudice any creditor or employee.

Parties
Joint and Several Administrators (applicants/first Plaintiffs): Samuel Freeman, Justin Walsh and Adam Nikitins; Second Plaintiff: Regional Express Holdings Limited (Administrators Appointed); Third Plaintiff: Air Partners Pty Ltd (Administrators Appointed); Fourth Plaintiff: Rex Investment Holdings Pty Ltd (Administrators Appointed); Fifth Plaintiff: Regional Express Pty Ltd (Administrators Appointed); Sixth Plaintiff: Rex Airlines Pty Ltd (Administrators Appointed); Interested Person: Commonwealth of Australia
Jurisdiction
Australia
Judgment Date
20 November 2024
Procedural Posture
Corporations Matter (voluntary Administration) / Interlocutory Application for Extension, Judicial Advice, and Limitation of Liability
Outcome
Applications granted
Legal Topics
Extension of Convening Period, Administrators' Liability, Judicial Directions, Funding Arrangements, Sale of Business as Going Concern
Corporations Law Insolvency Extension of Convening Period Administrators' Liability Judicial Directions Funding Arrangements Sale of Business as Going Concern

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Parties

Samuel Freeman, Justin Walsh and Adam Nikitins

Joint and Several Administrators (applicants/first Plaintiffs)

Regional Express Holdings Limited (Administrators Appointed)

Second Plaintiff

Air Partners Pty Ltd (Administrators Appointed)

Third Plaintiff

Rex Investment Holdings Pty Ltd (Administrators Appointed)

Fourth Plaintiff

Regional Express Pty Ltd (Administrators Appointed)

Fifth Plaintiff

Rex Airlines Pty Ltd (Administrators Appointed)

Sixth Plaintiff

Commonwealth of Australia

Interested Person

Procedural Posture

Corporations Matter (voluntary Administration) / Interlocutory Application for Extension, Judicial Advice, and Limitation of Liability

Legal Issues

  1. 1 Should the convening period for the second meeting of creditors of the Rex Companies be extended?
  2. 2 Should administrators' personal liability under finance agreements be limited?
  3. 3 Are administrators justified in entering into and performing finance and security agreements?

Ratio Decidendi

Orders granted to extend convening period to 30 June 2025, limit administrators’ personal liability under Commonwealth Finance and Security Agreements, and provide judicial advice that entry into and performance of those agreements is justified, as these measures are in creditors’ and stakeholders’ interests, further administration objectives, are supported by funding arrangements, and do not unduly prejudice any creditor or employee.

Court Disposition

Applications granted

Orders

  • Commonwealth granted leave to appear as interested person.
  • Certain affidavit paragraphs and exhibits kept confidential.