Karen Petch, led by Anthony McGrath SC and instructed by Gadens, recently represented a group of bondholders (controlling over $200 million in bond debt) in the Virgin Australia administration.
The Federal Court confirmed that the entitlement of creditors to determine a company’s future at its second meeting is subject to the previous conduct of the company’s administrators exercising their powers under s 437A(1)(c) of the Corporations Act 2001 (Cth). The effect of the Virgin Administrators entering into an agreement to sell Virgin Australia’s business to Bain Capital was to narrow the range of options available to creditors at the second meeting.
The judgment can be found here.
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