Transport Workers' Union of Australia, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 2) [2020] FCA 1284

Transport Workers' Union of Australia, in the matter of Virgin Australia Holdings Ltd (administrators appointed) (No 2) [2020] FCA 1284

It is appropriate to make orders modifying the meeting minute-recording requirements so that the names of employees represented by unions at the creditors' meetings of the Virgin companies need not be included in the minutes, in order to protect their privacy and prevent adverse action, provided such information is ascertainable if required.

Parties
First Plaintiff: Transport Workers' Union of Australia; Second Plaintiff: Australian Municipal, Administrative, Clerical and Services Union; Third Plaintiff: Flight Attendants' Association of Australia; Fourth Plaintiff: Australian Licenced Aircraft Engineers Association; Fifth Plaintiff: VIPA; Sixth Plaintiff: Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia; Seventh Plaintiff: Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union; First Defendant: Vaughan Strawbridge, Salvatore Algeri, John Greig and Richard Hughes, in their capacity as Joint and Several Administrators; Second Defendant: Virgin Australia Holdings Ltd (Administrators Appointed) ACN 100 686 226; Third Defendant: Virgin Australia International Operations Pty Ltd (Administrators Appointed) ACN 155 859 608; Fourth Defendant: Virgin Australia International Holdings Pty Ltd (Administrators Appointed) ACN 155 860 021; Fifth Defendant: Virgin Australia International Airlines Pty Ltd (Administrators Appointed) ACN 125 580 823; Sixth Defendant: Virgin Australia Airlines (SE Asia) Pty Ltd (Administrators Appointed) ACN 097 892 389; Seventh Defendant: Virgin Australia Airlines Holdings Pty Ltd (Administrators Appointed) ACN 093 924 675; Eighth Defendant: VAH Newco No.1 Pty Ltd (Administrators Appointed) ACN 160 881 345; Ninth Defendant: Tiger Airways Australia Pty Limited (Administrators Appointed) ACN 124 369 008; Tenth Defendant: Virgin Australia Airlines Pty Ltd (Administrators Appointed) ACN 090 670 965; Eleventh Defendant: VA Borrower 2019 No. 1 Pty Ltd (Administrators Appointed) ACN 633 241 059; Twelfth Defendant: VA Borrower 2019 No. 2 Pty Ltd (Administrators Appointed) ACN 637 371 343; Thirteenth Defendant: Virgin Tech Pty Ltd (Administrators Appointed) ACN 101 808 879; Fourteenth Defendant: Short Haul 2018 No. 1 Pty Ltd (Administrators Appointed) ACN 622 014 831; Fifteenth Defendant: Short Haul 2017 No. 2 Pty Ltd (Administrators Appointed) ACN 617 644 443; Sixteenth Defendant: Short Haul 2017 No. 3 Pty Ltd (Administrators Appointed) ACN 622 014 813; Seventeenth Defendant: VBNC5 Pty Ltd (Administrators Appointed) ACN 119 691 502; Eighteenth Defendant: A.C.N. 098 904 262 Pty Ltd (Administrators Appointed) ACN 098 904 262; Nineteenth Defendant: Virgin Australia Regional Airlines Pty Ltd (Administrators Appointed) ACN 008 997 662; Twentieth Defendant: Virgin Australia Holidays Pty Ltd (Administrators Appointed) ACN 118 552 159; Twenty First Defendant: Virgin Australia Holidays Pty Ltd (Administrators Appointed) ACN 118 552 159; Twenty Second Defendant: VB Ventures Pty Ltd (Administrators Appointed) ACN 125 139 004; Twenty Third Defendant: Virgin Australia Cargo Pty Ltd (Administrators Appointed) ACN 600 667 838; Twenty Fourth Defendant: VB Leaseco Pty Ltd (Administrators Appointed) ACN 134 268 741; Twenty Fifth Defendant: VA Hold Co Pty Ltd (Administrators Appointed) ACN 165 507 157; Twenty Sixth Defendant: VA Lease Co Pty Ltd (Administrators Appointed) ACN 165 507 291; Twenty Seventh Defendant: Virgin Australia 2013-1 Issuer Co Pty Ltd (Administrators Appointed) ACN 165 507 326; Twenty Eighth Defendant: 737 2012 No.1 Pty Ltd (Administrators Appointed) ACN 154 201 859; Twenty Ninth Defendant: 737 2012 No. 2 Pty Ltd (Administrators Appointed) ACN 154 225 064; Thirtieth Defendant: Short Haul 2016 No. 1 Pty Ltd (Administrators Appointed) ACN 612 766 328; Thirty First Defendant: Short Haul 2016 No. 2 Pty Ltd (Administrators Appointed) ACN 612 796 077; Thirty Second Defendant: Short Haul 2014 No. 1 Pty Ltd (Administrators Appointed) ACN 600 809 612; Thirty Third Defendant: Short Haul 2014 No. 2 Pty Ltd (Administrators Appointed) ACN 600 878 199; Thirty Fourth Defendant: VA Regional Leaseco Pty Ltd (Administrators Appointed) ACN 127 491 605; Thirty Fifth Defendant: VB 800 2009 Pty Ltd (Administrators Appointed) ACN 135 488 934; Thirty Sixth Defendant: VB Leaseco No 2 Pty Ltd (Administrators Appointed) ACN 142 533 319; Thirty Seventh Defendant: VB LH 2008 No. 1 Pty Ltd (Administrators Appointed) ACN 134 280 354; Thirty Eighth Defendant: VB LH 2008 No. 2 Pty Ltd (Administrators Appointed) ACN 134 288 805; Thirty Ninth Defendant: VB PDP 2010-11 Pty Ltd (Administrators Appointed) ACN 140 818 266; Fortieth Defendant: Tiger International Number 1 Pty Ltd (Administrators Appointed) ACN 606 131 944; Forty First Defendant: VAH Newco No. 2 Pty Ltd (In Liquidation) (Administrators Appointed) ACN 160 881 354; Forty Second Defendant: VB Investco Pty Ltd (In Liquidation) (Administrators Appointed) ACN 101 961 095
Jurisdiction
Australia
Judgment Date
03 September 2020
Procedural Posture
Corporations Interlocutory Application / Application for Orders Concerning Creditor Meeting Procedures
Outcome
Orders granted as sought by the unions on their interlocutory process.
Legal Topics
Attendance at Creditors' Meetings, Confidentiality of Union Membership, Court Modification of Insolvency Procedure, Employee Representation by Union at Meetings
Corporations Law Insolvency Law Employment Law Attendance at Creditors' Meetings Confidentiality of Union Membership Court Modification of Insolvency Procedure Employee Representation by Union at Meetings

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Parties

Transport Workers' Union of Australia

First Plaintiff

Australian Municipal, Administrative, Clerical and Services Union

Second Plaintiff

Flight Attendants' Association of Australia

Third Plaintiff

Australian Licenced Aircraft Engineers Association

Fourth Plaintiff

VIPA

Fifth Plaintiff

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia

Sixth Plaintiff

Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union

Seventh Plaintiff

Vaughan Strawbridge, Salvatore Algeri, John Greig and Richard Hughes, in their capacity as Joint and Several Administrators

First Defendant

Virgin Australia Holdings Ltd (Administrators Appointed) ACN 100 686 226

Second Defendant

Virgin Australia International Operations Pty Ltd (Administrators Appointed) ACN 155 859 608

Third Defendant

Virgin Australia International Holdings Pty Ltd (Administrators Appointed) ACN 155 860 021

Fourth Defendant

Virgin Australia International Airlines Pty Ltd (Administrators Appointed) ACN 125 580 823

Fifth Defendant

Virgin Australia Airlines (SE Asia) Pty Ltd (Administrators Appointed) ACN 097 892 389

Sixth Defendant

Virgin Australia Airlines Holdings Pty Ltd (Administrators Appointed) ACN 093 924 675

Seventh Defendant

VAH Newco No.1 Pty Ltd (Administrators Appointed) ACN 160 881 345

Eighth Defendant

Tiger Airways Australia Pty Limited (Administrators Appointed) ACN 124 369 008

Ninth Defendant

Virgin Australia Airlines Pty Ltd (Administrators Appointed) ACN 090 670 965

Tenth Defendant

VA Borrower 2019 No. 1 Pty Ltd (Administrators Appointed) ACN 633 241 059

Eleventh Defendant

VA Borrower 2019 No. 2 Pty Ltd (Administrators Appointed) ACN 637 371 343

Twelfth Defendant

Virgin Tech Pty Ltd (Administrators Appointed) ACN 101 808 879

Thirteenth Defendant

Short Haul 2018 No. 1 Pty Ltd (Administrators Appointed) ACN 622 014 831

Fourteenth Defendant

Short Haul 2017 No. 2 Pty Ltd (Administrators Appointed) ACN 617 644 443

Fifteenth Defendant

Short Haul 2017 No. 3 Pty Ltd (Administrators Appointed) ACN 622 014 813

Sixteenth Defendant

VBNC5 Pty Ltd (Administrators Appointed) ACN 119 691 502

Seventeenth Defendant

A.C.N. 098 904 262 Pty Ltd (Administrators Appointed) ACN 098 904 262

Eighteenth Defendant

Virgin Australia Regional Airlines Pty Ltd (Administrators Appointed) ACN 008 997 662

Nineteenth Defendant

Virgin Australia Holidays Pty Ltd (Administrators Appointed) ACN 118 552 159

Twentieth Defendant

Virgin Australia Holidays Pty Ltd (Administrators Appointed) ACN 118 552 159

Twenty First Defendant

VB Ventures Pty Ltd (Administrators Appointed) ACN 125 139 004

Twenty Second Defendant

Virgin Australia Cargo Pty Ltd (Administrators Appointed) ACN 600 667 838

Twenty Third Defendant

VB Leaseco Pty Ltd (Administrators Appointed) ACN 134 268 741

Twenty Fourth Defendant

VA Hold Co Pty Ltd (Administrators Appointed) ACN 165 507 157

Twenty Fifth Defendant

VA Lease Co Pty Ltd (Administrators Appointed) ACN 165 507 291

Twenty Sixth Defendant

Virgin Australia 2013-1 Issuer Co Pty Ltd (Administrators Appointed) ACN 165 507 326

Twenty Seventh Defendant

737 2012 No.1 Pty Ltd (Administrators Appointed) ACN 154 201 859

Twenty Eighth Defendant

737 2012 No. 2 Pty Ltd (Administrators Appointed) ACN 154 225 064

Twenty Ninth Defendant

Short Haul 2016 No. 1 Pty Ltd (Administrators Appointed) ACN 612 766 328

Thirtieth Defendant

Short Haul 2016 No. 2 Pty Ltd (Administrators Appointed) ACN 612 796 077

Thirty First Defendant

Short Haul 2014 No. 1 Pty Ltd (Administrators Appointed) ACN 600 809 612

Thirty Second Defendant

Short Haul 2014 No. 2 Pty Ltd (Administrators Appointed) ACN 600 878 199

Thirty Third Defendant

VA Regional Leaseco Pty Ltd (Administrators Appointed) ACN 127 491 605

Thirty Fourth Defendant

VB 800 2009 Pty Ltd (Administrators Appointed) ACN 135 488 934

Thirty Fifth Defendant

VB Leaseco No 2 Pty Ltd (Administrators Appointed) ACN 142 533 319

Thirty Sixth Defendant

VB LH 2008 No. 1 Pty Ltd (Administrators Appointed) ACN 134 280 354

Thirty Seventh Defendant

VB LH 2008 No. 2 Pty Ltd (Administrators Appointed) ACN 134 288 805

Thirty Eighth Defendant

VB PDP 2010-11 Pty Ltd (Administrators Appointed) ACN 140 818 266

Thirty Ninth Defendant

Tiger International Number 1 Pty Ltd (Administrators Appointed) ACN 606 131 944

Fortieth Defendant

VAH Newco No. 2 Pty Ltd (In Liquidation) (Administrators Appointed) ACN 160 881 354

Forty First Defendant

VB Investco Pty Ltd (In Liquidation) (Administrators Appointed) ACN 101 961 095

Forty Second Defendant

Procedural Posture

Corporations Interlocutory Application / Application for Orders Concerning Creditor Meeting Procedures

Legal Issues

  1. 1 Whether the administrators should be relieved from recording in the minutes of creditors' meetings the names of employees represented by unions
  2. 2 Whether orders should be made to protect the confidentiality of union membership in the context of insolvency meetings

Ratio Decidendi

It is appropriate to make orders modifying the meeting minute-recording requirements so that the names of employees represented by unions at the creditors' meetings of the Virgin companies need not be included in the minutes, in order to protect their privacy and prevent adverse action, provided such information is ascertainable if required.

Court Disposition

Orders granted as sought by the unions on their interlocutory process.

Orders

  • The time for service of the plaintiffs' interlocutory process is abridged and the originating process is made returnable at 2.15pm on 3 September 2020.
  • Pursuant to section 447A(1) of the Corporations Act 2001 (Cth) and section 90-15 of the Insolvency Practice Schedule (Corporations) (Cth), the Insolvency Practice Rules (Corporations) 2016 (Cth) be modified to dispense with recording in the minutes the individual names of employees represented at the Second Meetings...