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Federal Court of Australia · [2026] FCA 586

Crawford, in the matter of Carbon Revolution

A Federal Court restructuring case about administrators trading Carbon Revolution companies through a proposed DOCA with limited personal...

Federal Court of Australia12 May 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Administrators may need Court orders before trading a distressed company through a rescue transaction.
  • A Federal Court restructuring case about administrators trading Carbon Revolution companies through a proposed DOCA with limited personal liability.

Use this to check

  • Administrators can seek orders limiting personal liability for trading during administration.
  • Supplier agreements and purchase-order terms matter when a company keeps trading in administration.
  • Creditor and employee positions should be understood before backing a rescue proposal.

Decision snapshot

  1. 1

    What happened

    • Carbon Revolution companies entered voluntary administration on 26 March 2026.
    • The administration was planned with Orion Infrastructure Capital as part of a recapitalisation through a deed of company arrangement.
    • Before the appointment, OIC had provided bridge funding and entered a restructuring support agreement with the companies and some senior noteholders.
    • The administrators identified secured debts, trade creditors, transaction-cost creditors, statutory creditors and employee entitlements of about $8.8 million.
  2. 2

    What the court had to decide

    • The Federal Court had to decide whether to make orders under s 447A of the Corporations Act and s 90-15 of the Insolvency Practice Schedule limiting administrators' personal liability for specified purchase orders and supplier agreements while the Carbon Revolution companies pursued a proposed deed of company arrangement.
  3. 3

    What the court decided

    • The Court made orders limiting the administrators' personal liability for the specified purchase orders and supplier agreements, subject to the relevant terms and notice requirements.
    • The Court also made confidentiality orders for commercially sensitive funding and transaction material connected with the proposed DOCA and recapitalisation.

Practical impact

Practical read

  • Administrators may need Court orders before trading a distressed company through a rescue transaction.
  • Suppliers, employees and directors should watch who bears post-appointment liabilities, how purchase orders are approved and how creditors are notified.

Useful next steps

  • Administrators can seek orders limiting personal liability for trading during administration.
  • Supplier agreements and purchase-order terms matter when a company keeps trading in administration.
  • Creditor and employee positions should be understood before backing a rescue proposal.
  • Court orders may include notice obligations and liberty for affected parties to apply.
  • Review supplier terms before supplying a company in voluntary administration.

Practical read

This case is a practical restructuring story, not just a technical insolvency order. The administrators were trying to keep a business platform alive long enough for a proposed recapitalisation to work. That meant continuing to deal with suppliers, employees, creditors and funders while personal liability rules under the Corporations Act sat in the background.

The Court accepted that the administrators had formed the view that the proposed DOCA was in creditors' interests and likely to be approved. Continuing trade was said to support the corporate rescue object of voluntary administration. But the Court also built in controls: the liability limits applied only where suppliers had accepted the relevant release or purchase-order terms and where notice of the orders was given.

For small businesses, there are two angles. If your own business is in distress, voluntary administration is not just a pause button. Trading through the process may require careful Court orders, creditor notice and supplier terms. If you supply a company in administration, read the purchase orders and notices closely. The legal position for post-appointment supply can be different from ordinary trade credit.

Checks to run

Key points

  • Review supplier terms before supplying a company in voluntary administration.
  • Check whether purchase orders limit recourse to company assets or administrator indemnity rights.
  • Keep creditor notices, employee-entitlement figures and funding documents organised.
  • Document why continued trading is expected to improve creditor outcomes.
  • Get legal help before relying on administration as a rescue pathway.

Key takeaways

  • Administrators can seek orders limiting personal liability for trading during administration.
  • Supplier agreements and purchase-order terms matter when a company keeps trading in administration.
  • Creditor and employee positions should be understood before backing a rescue proposal.
  • Court orders may include notice obligations and liberty for affected parties to apply.

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