Just being reported now...….
Ben Butler
Deloitte understood to be appointed administrator for Virgin Australia
It is understood big four accounting firm Deloitte will be appointed as Virgin Australia’s administrators.
The move comes after the federal government
rebuffed the airline’s request for a $1.4bn emergency loan as part of a wider industry bailout package and
despite duelling aid offers from NSW and Queensland, each of which wanted to host Virgin Australia’s HQ.
It is
not clear what will happen to the approximately 10,000 people who work for Virgin Australia if it goes into administration.
Also unclear is what will happen to its fleet of 130 planes, many of which are heavily mortgaged.
The company has been crushed by a
$4.8bn mountain of debt and has been burning cash while the fleet is grounded.