Media Reflection Assignment

Media reflection assignment
Summary- Bestjet is an Queensland based online budgetair ticket booking company that provides
discounted ticket booking service to its customer. Recently Gaurdian Australiareported that
Bestjet has opted for voluntary administration a day before Christmas in December 2018.
Later, as per the article in THE GAURDIAN by Michael McGowan dated 9th of January
2019, Director of the Collapsed flight booking service company has told in a meeting of
creditors that company was forced to opt for voluntary administration as the company was
not getting a payment which amounts to $3.2million promised by former owners of the
company (the Guardian, 2019).Founder of the company is Rachel James. Bestjet was sold
to McVicker International in October last year. Bestjet’s collapse left thousands of traveller
who booked flights out of their pocket and now unanswered. Company’spresent owner told
that he is legally obliged to place the company into administration by paying sum of
$3.2million. The article speaks about how former and present owner are trying to get away
fromresponsibility to accept their faults in the collapse of company (Spokeo, 2019).
Article analysis-
If a company is suffering fromeconomic hardship then it can be placed into voluntary
administration. Motive behind voluntary administration is to decide the actions which are the
demand of time and needed to be taken immediately . Voluntary administration demands
need of capable administrator to protect the company along with customers and take full
control ofthe business entity to make a way for the efficient and profit making
management(ASIC 2017). In case, the objective is to manage the relationships of the entity in
a manner so as to provide better returns to the creditors than what they would receive in case
of liquidation of company. The mechanism for achieving such aims is considered as a deed of
company arrangement.
In present case, McVicker International has declared that it is legal obliged in the
documents filed in ASIC to place BestJet into Voluntary administration.In a meeting of
group of creditors , under the rule 75-225(3) of the Insolvency practice Rules(Corporations)
2016. McVicker told in the meeting of creditors as per Section 439 A of the corporation act
that he received no financial benefit.Also his involvement in this company causes him
irretrievable damage to his reputation but doing so was in the best interests of creditors. He
also spoke about integrity, high hope and optimism behind the reason why he entered into
business and he is finding now due to unconcionable and misleading practices, he is now
restrained to give more detailed information. Such statements from McVicker came as Rachel