looks like Deloitte are trying to get out of their obligations, i thought they are responsible for all running cost whilst they had the reins.
Virgin sale: Administrators don’t want JobKeeper bill
The Australian Taxation Office is in discussions with the administrators of Virgin Australia to determine to what extent they should be liable for any overpayments made to the airline’s employees under the federal government’s JobKeeper scheme.
In the Federal Court on Friday morning, the ATO asked for more time to discuss the issue with Virgin’s administrator Deloitte.
It also said it wanted to consider whether there should be any restrictions placed on the waiver of personal liabilities granted by the court to Deloitte for Virgin’s incurred debts during the administration process.
The court will now reconvene next Wednesday to debate or finalise these issues.
The administrators have asked the court to consider that their personal liability be limited where the airline needs to enter into new contracts required to maintain operations during the administration process.
Specifically they want to avoid personal liability for payments under the federal government’s coronavirus wage relief subsidy, JobKeeper
More than 8,200 of Virgin Australia’s 10,000 employees have claimed a total of $24.8m in JobKeeper payments.
On Wednesday the commonwealth Attorney-General also sought to intervene in the proceedings in relation to JobKeeper payments to Virgin staff and the federal government’s Fair Entitlements Guarantee (FEG) scheme, which pays workers’ entitlements if their bankrupt employer cannot.
The administrators have estimated that the value of employee entitlements that would crystallise on the liquidation of the group is approximately $450m.