The administrators dont have that much rsponsibility for the existing debts, only those that are incurred as a result of what they do. There job is to maximise the funds going back to the lenders who have the first charge on the assets.
When they have done all they can then the liquidator will wind up the business if there is anything left. At the bottom of the pile for getting anything will be the shareholders.
As for giving notice, thats not practicable. If XL were to tell passengers to not book as they were in trouble then the business would be undermined and almost guarantee its failure (remember the run on Northern Rock). It is business as normal until you absolutely know its not.
Onced everyone has been sacked, then communication does become difficult and with something as big as this it is even more so with a range of agencies with different roles.
It is difficult when people are extremely disappointed and both passengers and staff often their have too high levels of expectations of what will be said done.
It is likely that all staff not needed by the administrator will have been laid off and had explained to them what will happen re outstanding wages etc.
Those needed to help the administrator go on his payroll and will have a view of how long that will be for.
The margins between success and failure can be very narrow and it does not take much to switch a business from being OK to being in trouble and that is often outside the control of anyone running the business.
Higher costs, tighter credit, a re-evaluation of risk, market sentiment and fears of recession all shift the business profile. XL moved from being a bankable proposition to one that was not.
It is tough and more will follow. The next big issues will be the difference between the ATOL backed passengers and those who are not. I suspect that the latter group will become bigger as the next round of failures hits.
Willie Walsh estimated 30 more before Christmas.