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Old 1st May 2020, 07:51
  #38 (permalink)  
air command
 
Join Date: May 2008
Location: australia
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Okay Telfer, I’ll try and explain it for you. Virgin is not years behind in leases. Normally leases are just a monthly expense, that would be paid for periodically out of cash flow. But once administration commenced , the leasing company becomes a creditor for the total cost of that lease, through to the end of the lease agreement. eg If you were one year into a ten year lease and entered VA, there is still another 9 years to run on that contract. The leasing company will be claiming a debt for the remaining 9 years of the lease. You could imagine how big this number could be for 60+ aircraft, with long leases to run.
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