Virgin Australia considers going into administration as Labor calls for government rescue
The grounded airline is in a trading halt after hiring insolvency and turnaround experts amid the coronavirus crisis
It is believed administration, under which control of the company would be handed to insolvency experts, is at one end of the range of options being considered by Virgin Australia.
Administrators have powers not available to company directors, including the ability to force all creditors to take a haircut under a deed of company arrangement. Administrators are also able to disclaim uneconomic contracts, freeing the company from onerous obligations.
To succeed, a deed of company arrangement requires support from half the creditors, by number and amount owed.
Source:
https://www.theguardian.com/business...ernment-rescue