Originally Posted by
Wizofoz
Making employees redundant is expensive IF you are trying to hold onto your assets and get an operation functioning again. To emerge from administration, VA must show it has a business plan that means it can service it's debt. It is trying to negotiate with debtors, but each redundant employee is a mark on the red side of the ledger.
If it can't come up with a business plan that shows it will be able to service all those debts, it has not choice but to liquidate. That might mean there not being enough in the pot to pay all entitlements, but you can't be a running business and not pay full entitlements to employees you make redundant.
I'm not saying it's a better outcome, I'm saying it might be a commercial reality.
but aren't you foregetting that the administrator can make most of that debt mountain go away, ie. tell aircraft owners to come & get their jets, as no more lease payments will be made.
I maybe getting confused with chapter 11 in USA, but think admin in Australia means just that. The creditors are stuffed. Who would give an airline credit ?