Originally Posted by
galdian
OK I'll be the financial bunny:
- who "owns" velocity and why (if bought back by VA) is it not part of the VA adiministration?
- who, if anyone, primarily benefits from velocity being outside the VA administration ( as you assert).
Okey doke, so Velocity Frequent Flyer Group Pty Ltd is a business entity in its own right that is wholly owned by Virgin Australia Holdings. It has two directors - Paul Scurrah and Keith Neate. Interestingly up until early March it had a third director, Ken Dean. He is also a VAH director. Dean ceased being a director of Velocity on 29 February and he was not replaced. The Velocity FFG is in turn comprised of seven different business entities.
Why isn't it part of the administration? There are 38 VAH business entities covered by the administration and Velocity FFG isn't one of them. I can only imagine that Velocity FFG is deemed to be sufficiently solvent and liquid that it doesn't require the protection of voluntary administration.
Que bono? I'm not 100 percent sure that anyone does but it just strikes me as odd that the business entity that creditors' money helped buy back isn't currently subject to the administration. The timing of the change to the composition of the Velocity board strikes me as curious though.
Originally Posted by
galdian
Finally simple yes/no: will there be a VA2?
Pass. I just think that there are currently too many variables and unknowns to make a straight up and down yes/no call on that.
Something will most assuredly rise from the ashes but it's hard to say at this stage what you'll be able to call that. A lot of it comes down to what Deloitte can do with the debt. Apparently the bidders teleconferenced with the unions today so they will now have a feel for how difficult any substantial restructuring will be. I'm thinking more and more that the emerging complexities are going to swamp Deloitte's sales process. I suspect that any of the bidders apart from maybe BGH would be just as happy picking through a liquidation rather than this process and it's only FOMO that's keeping the process ticking over.