Virgin Australia has gone into administration with over $3 bln of debt after a bailout failed to materialise. Australia is loath to leave Qantas a monopoly, which should help spur a solution. But remaking Virgin won’t be easy, says AlecMac11
The Sydney-listed airline has appointed Deloitte as administrators of the company and a number of its subsidiaries, it said in a statement.
Virgin Australia had sought financial assistance from a number of parties including state and federal governments to help it through the crisis caused by the coronavirus pandemic, but is yet to secure the required support, the statement said. “Our intention is to undertake a process to restructure and refinance the business and bring it out of administration as soon as possible”, Vaughan Strawbridge, an administrator at Deloitte, said in the statement.
Deloitte has begun a process of seeking interest from parties for participation in the recapitalisation and has received several expressions of interest, the statement added.
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