Hedge, the application of Hedge in his capacity as Administrator of Federation Health Ltd (Administrator Appointed) [2005] FCA 687

REASONS FOR JUDGMENT 1 On 16 May last I made interlocutory orders in this application. I will give short reasons for doing so. 2 The substantive application is made pursuant to s 82XZE of the National Health Act 1953 (Cth) (the Act) by Peter Hedge (the applicant) in his capacity as Administrator of Federation Health Ltd (Federation) for an order that a Scheme of Arrangement Deed (the Deed) between Latrobe Health Services Incorporated (Latrobe), Federation and the applicant dated 11 May 2005 be given effect to, together with an ancillary order pursuant to s 447A of the Corporations Act 2001 (Cth) (as applied by s 82XB of the Act). 3 The statutory scheme is explained by French J in Re Hedge, as Administrator of Goldfields Medical Fund Incorporated [2002] FCA 1303 and Re Hedge, as Administrator of Goldfields Medical Fund Incorporated (No 2) (2002) 196 ALR 557. I shall refer to the Deed in more detail when the proceeding comes on for substantive hearing. 4 The application is supported by an affidavit by the applicant in which the history of the matter leading to the execution of the Deed is recounted. It is also supported by an affidavit of the Chief Executive Officer of the Private Health Insurance Administration Council (PHIAC), the relevant regulator. 5 The purpose of this hearing was to determine a procedure that will ensure proper consideration of the proposed orders by the Court. That includes ensuring that interested parties are appropriately informed about the application. The parties to the Deed and the PHIAC are, of course, aware of this proceeding. Those most directly affected are the contributors of Federation and they will be notified pursuant to these orders in a satisfactory manner. The statutory scheme does not provide for a meeting of contributors to be held. The interests of contributors of Latrobe are represented by it. In addition, public advertisements will bring the matter to the attention of such contributors together with other potential interested parties such as creditors of either organisation. 6 This is not the occasion for close scrutiny of the Deed, although, if there were any obvious defect, it should be pointed out immediately rather than have further expense of, and incidental to, the substantive hearing incurred. No such defect is apparent to me. 7 I was satisfied that the orders made were appropriate to achieve the statutory purpose.