The staff “lent” the cash that was provisioned to pay their FULL entitlements to the Virgin Administrators to keep the airline trading. If Virgin had then gone under. the staff would have received partial entitlements under the FEG Scheme.........and once the staff had woken up to what had been done, it would have been off to the Supreme Court to sue Deloitte.
It was jolly decent of you staff to keep the airline going so Bain could buy it.
No wonder Deloitte was adamant that Bain was to be the buyer. Deloitte stood to end up in deep crap if Virgin was liquidated AFTER they had spent the employee entitlement cash!
Full employee entitlements plus lsl and redundancy was estimated at 440 million. Virgin had 1.4 billion in cash and receivables at that point.
‘’But we told the Government and they let us do it! Deloitte said this was in the interest of the creditors, but not necessarily the employees if it had gone under.
Watch all the cash disappear when Bain takes over. It will all be replaced by debt. Anyone remember “Catch 22”? The scene where Yossarian goes to the medical kit for morphine to ease the wounded Snowden’s pain but there is nothing - Milo Minderbender had sold all the morphine and left an IOU in the kit.
Last edited by Sunfish; 28th Aug 2020 at 05:28.