Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 9) [2020] FCA 1652

Strawbridge, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 9) [2020] FCA 1652

Leave to transfer shares to Bain Capital is granted because the shares in VAH have no economic value, shareholders would not receive any return in liquidation, and completion of the Bain DOCAs is expected to provide a better outcome for creditors without unfair prejudice to shareholders.

Jurisdiction
Australia
Judgment Date
10 November 2020
Procedural Posture
Corporations – Voluntary Administration / Application for Leave to Transfer Shares Under S 444 GA of the Corporations Act
Outcome
Leave granted to transfer shares to Bain Capital under s 444GA(1)(b) of the Corporations Act.
Legal Topics
['voluntary Administration' 'compulsory Share Transfer' 'unfair Prejudice' 'deed of Company Arrangement' 'creditor Interests' 'shareholder Rights']
['corporations' 'corporate Insolvency'] ['voluntary Administration' 'compulsory Share Transfer' 'unfair Prejudice' 'deed of Company Arrangement' 'creditor Interests' 'shareholder Rights']

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Procedural Posture

Corporations – Voluntary Administration / Application for Leave to Transfer Shares Under S 444 GA of the Corporations Act

Legal Issues

  1. 1 ['Whether leave should be granted to transfer all shares in Virgin Australia Holdings Ltd to Bain Capital under s 444GA(1)(b) of the Corporations Act' 'Whether the proposed transfer would unfairly prejudice shareholders']

Ratio Decidendi

Leave to transfer shares to Bain Capital is granted because the shares in VAH have no economic value, shareholders would not receive any return in liquidation, and completion of the Bain DOCAs is expected to provide a better outcome for creditors without unfair prejudice to shareholders.

Court Disposition

Leave granted to transfer shares to Bain Capital under s 444GA(1)(b) of the Corporations Act.

Orders

  • ['Leave granted to transfer all shares in Virgin Australia Holdings Ltd from members to Bain Capital pursuant to clause 10.3 of the DOCA.' 'Deed Administrators permitted to execute share transfer forms, documents, and register Bain Capital or its nominee as shareholder.' "Deed Administrators' costs are to be costs...