Government Loan to Virgin Australia
If anyone takes what Sunfish saids as anything other than a pathetic cry for attention then you are setting yourself up for disappointment.
As far as Sunfish is concerned I will paraphrase Mark Twain:
As far as Sunfish is concerned I will paraphrase Mark Twain:
It is better to not post anything and let people think you are a fool than to hit submit reply and remove all doubt.
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They've gone into administration.
The move comes after the federal government rebuffed the airline’s request for a $1.4bn emergency loan as part of a wider industry bailout package and despite duelling aid offers from NSW and Queensland, each of which wanted to host Virgin Australia’s HQ.
It is not clear what will happen to the approximately 10,000 people who work for Virgin Australia if it goes into administration.
Also unclear is what will happen to its fleet of 130 planes, many of which are heavily mortgaged.
The company has been crushed by a $4.8bn mountain of debt and has been burning cash while the fleet is grounded.
From Guardian Australia
Deloitte understood to be appointed administrator for Virgin Australia
It is understood big four accounting firm Deloitte will be appointed as Virgin Australia’s administrators.The move comes after the federal government rebuffed the airline’s request for a $1.4bn emergency loan as part of a wider industry bailout package and despite duelling aid offers from NSW and Queensland, each of which wanted to host Virgin Australia’s HQ.
It is not clear what will happen to the approximately 10,000 people who work for Virgin Australia if it goes into administration.
Also unclear is what will happen to its fleet of 130 planes, many of which are heavily mortgaged.
The company has been crushed by a $4.8bn mountain of debt and has been burning cash while the fleet is grounded.
Guardian is the only source I can find on this so far, ASX has nothing released other than today's rating changes. Maybe than have an inside scoop other outlets don't?
Sad news coming off the back of State governments touching gloves over where the headquarters are located. I've not been in favour personally of a bailout in this thread but it's sad that any actual progress that may have been made in favour of one has been focused on keeping a HQ in a state rather than keeping people employed and the airline operating.
Sad news coming off the back of State governments touching gloves over where the headquarters are located. I've not been in favour personally of a bailout in this thread but it's sad that any actual progress that may have been made in favour of one has been focused on keeping a HQ in a state rather than keeping people employed and the airline operating.
It should be noted state government funding was going to be contingent on VA. It will still be available when the new Virgin rises, joining forces with whoever else joins the party...and it’ll be a party. My point...a sad situation, but there is hope. My thoughts sincerely, to all the great Virgin staff who deserve far better. I hope everyone can be flying again soon.
From the Sydney Morning Herald
https://www.smh.com.au/business/comp...20-p54lcd.html
Virgin Australia is preparing to go into voluntary administration, sources say, unable to survive under the weight of enormous debts and starved of cash by the coronavirus travel shutdown.
Australia's number two airline had already appointed Deloitte to looking at potential restructuring options and the accounting firm is expected to run the administration process, including trying to find new owners to keep it flying.
Virgin's board of directors were meeting on Monday. One well-placed source said the announcement of it going into administration was "imminent".
Virgin employs around 10,000 people directly and supports another 6000 jobs indirectly.
The airline was saddled with around $5 billion in debt and was running out of money as the coronavirus pandemic forced it to almost completely shut down its business.
The company being reborn through a deed of company arrangement struck in administration is "the airline's only chance", said a source familiar with Virgin's struggles.
Virgin's future had hung in the balance ever since the pandemic took hold. It had asked the federal government for a $1.4 billion loan to see it through the crisis but was rebuffed.
Several private equity firms are already sniffing around Virgin looking to potentially buy the business out of administration, which will see some of its debts wiped and aircraft leases renegotiated.
More to come
https://www.smh.com.au/business/comp...20-p54lcd.html
Virgin Australia is preparing to go into voluntary administration, sources say, unable to survive under the weight of enormous debts and starved of cash by the coronavirus travel shutdown.
Australia's number two airline had already appointed Deloitte to looking at potential restructuring options and the accounting firm is expected to run the administration process, including trying to find new owners to keep it flying.
Virgin's board of directors were meeting on Monday. One well-placed source said the announcement of it going into administration was "imminent".
Virgin employs around 10,000 people directly and supports another 6000 jobs indirectly.
The airline was saddled with around $5 billion in debt and was running out of money as the coronavirus pandemic forced it to almost completely shut down its business.
The company being reborn through a deed of company arrangement struck in administration is "the airline's only chance", said a source familiar with Virgin's struggles.
Virgin's future had hung in the balance ever since the pandemic took hold. It had asked the federal government for a $1.4 billion loan to see it through the crisis but was rebuffed.
Several private equity firms are already sniffing around Virgin looking to potentially buy the business out of administration, which will see some of its debts wiped and aircraft leases renegotiated.
More to come
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Same story here.....
Ben Butler
The move comes after the federal government rebuffed the airline’s request for a $1.4bn emergency loan as part of a wider industry bailout package and despite duelling aid offers from NSW and Queensland, each of which wanted to host Virgin Australia’s HQ.
It is not clear what will happen to the approximately 10,000 people who work for Virgin Australia if it goes into administration.
Also unclear is what will happen to its fleet of 130 planes, many of which are heavily mortgaged.
The company has been crushed by a $4.8bn mountain of debt and has been burning cash while the fleet is grounded.
Deloitte understood to be appointed administrator for Virgin Australia
It is understood big four accounting firm Deloitte will be appointed as Virgin Australia’s administrators.The move comes after the federal government rebuffed the airline’s request for a $1.4bn emergency loan as part of a wider industry bailout package and despite duelling aid offers from NSW and Queensland, each of which wanted to host Virgin Australia’s HQ.
It is not clear what will happen to the approximately 10,000 people who work for Virgin Australia if it goes into administration.
Also unclear is what will happen to its fleet of 130 planes, many of which are heavily mortgaged.
The company has been crushed by a $4.8bn mountain of debt and has been burning cash while the fleet is grounded.
This action might well produce the best outcome for Virgins wonderful staff and their customers. Don’t despair. Many voluntary administrations have a good ending. It’s not over yet.
Be aware though that Qantas will now be doing its level best to drive an oak stake through Virgins heart. I would expect they will engage in dirty tricks. Rumor, fake news, attempts at locking them out of terminals, lobbying CASA, Government and suppliers, etc. Stay strong.
Be aware though that Qantas will now be doing its level best to drive an oak stake through Virgins heart. I would expect they will engage in dirty tricks. Rumor, fake news, attempts at locking them out of terminals, lobbying CASA, Government and suppliers, etc. Stay strong.
It should be noted state government funding was going to be contingent on VA. It will still be available when the new Virgin rises, joining forces with whoever else joins the party...and it’ll be a party. My point...a sad situation, but there is hope. My thoughts sincerely, to all the great Virgin staff who deserve far better. I hope everyone can be flying again soon.
Virgin reported losses, as Qantas made profits
Jonathan Rochford, a funds manager at Narrow Road Capital, told ABC News Virgin Australia had been poorly managed for years, and he thought insolvency would be the best option."Virgin has a myriad of problems and a government bailout without insolvency will get in the way of fixing these problems," he said.
Mr Rochford argues Virgin has consistently struggled to attract the high paying customers to be a strong competitor to Qantas.
After an IPO at $2.25 in 2003, its shares have rarely traded above $0.50 in the past decade, he said.
"The company has pursued growth over profits adding marginal routes that weighed down the good business it had servicing the capital city routes," Mr Rochford said.
"This failed strategy has left the airline overloaded with aircraft.
"The sale and subsequent repurchase of part of the frequent flyer business has left it loaded with debt, with most of the fleet and the frequent flyer business locked up by secured creditors."
Virgin wants a $1.4 billion bailout. Here's how that could work
A nation of travellers is grounded and Virgin is asking for government help to the tune of $1.4 billion. Here's how a bailout of the Aussie airlines could work.
He said a government bailout, if put in place without insolvency, would "delay and obstruct the necessary restructuring and increase the risk that Virgin ultimately ends up like Ansett".
He also pointed out that about 75 per cent of the debt is believed to be owed to foreign lenders.
"A bailout of Virgin without an insolvency is likely to result in hundreds of millions of dollars being transferred from Australian taxpayers to foreign lenders," Mr Rochford said.
A revamped Virgin Australia would be better off concentrating on profitable critical domestic routes, employing less staff and reducing its fleet, he said.
In such a scenario, Virgin Australia's loss-making low-cost offshoot, Tigerair Australia, would disappear, and new owners would step in.
As seen on ABC.website. Quite telling re multi millions being transferred from Australian Taxpayers to foreign lenders. Nuff said.
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Faaaark, hate this ****. Thought for all the V crew. Get on to whatever VA Ops / HR website you guys have and take snapshots of everything important. Leave balances, payslips, currency, sim, EP all that ****. Access might be lost pretty quick if things don’t go well.
Hope this turns out as well as it can for all our V mates. Am feeling pretty distressed for you guys right now.
Hope this turns out as well as it can for all our V mates. Am feeling pretty distressed for you guys right now.
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The Perth Mining Operation could be sold off or VARA/Whatever it’s called.
Tiger AOC could be sold to Scoot. To be honest just get rid of it. The AOC isn’t worth anything.
Virgin 737 Domestic stand-alone, with 3 or 4 lounges, feeding of International Partners only, probably has legs too.
I don’t think it’s gone forever. It’s clear NSW and QLD will be a major player in the Administration process. What’s on the other side of the fence, we’ll rewind the clock 15 years and I think that’s what they should go back to.
Tiger AOC could be sold to Scoot. To be honest just get rid of it. The AOC isn’t worth anything.
Virgin 737 Domestic stand-alone, with 3 or 4 lounges, feeding of International Partners only, probably has legs too.
I don’t think it’s gone forever. It’s clear NSW and QLD will be a major player in the Administration process. What’s on the other side of the fence, we’ll rewind the clock 15 years and I think that’s what they should go back to.
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https://www.theaustralian.com.au/bus...a3c93959710a1b
"Virgin’s Australia’s board is understood has concluded its meeting, with the airline to be formally placed into voluntary administration on Tuesday."
"Virgin’s Australia’s board is understood has concluded its meeting, with the airline to be formally placed into voluntary administration on Tuesday."