Several “high-quality” parties have expressed an interest in taking over Virgin Australia, the administrators have revealed, as 1,300 of the airline’s creditors and observers including financiers, employees, unions and bondholders met via video link.
Key points:
- Virgin Australia entered voluntary administration on April 21 owing almost $7 billion to more than 12,000 creditors
- Already several parties have expressed an interest in taking over the airline and the process should be wrapped up by the end of June
- Deloitte is the administrator, while Morgan Stanley has been appointed alongside Houlihan Lokey to run the sale process
Deloitte was appointed this month to restructure and sell Virgin, as the airline became Asia-Pacific’s first to fall amid the coronavirus pandemic.
Travel bans implemented to control the spread of the virus forced the airline to ground most of its planes and temporarily stand down the majority of its 10,000-strong workforce.
After failing to secure agreement on financial support, Virgin Australia was placed under voluntary administration on April 21.
The airline now owes almost $7 billion to more than 12,000 creditors, and will next meet on August 22.
Morgan…
