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Government Loan to Virgin Australia

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Government Loan to Virgin Australia

Old 14th May 2020, 12:21
  #1201 (permalink)  
 
Join Date: Jul 2008
Location: Australia
Posts: 386
No I didnít think it would be any different. Thankfully I donít work for Virgin but I went through the whole Ansett debacle so I know how it feels. I wish them all the best during what will be a crap time.
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Old 15th May 2020, 00:13
  #1202 (permalink)  
 
Join Date: Feb 2001
Posts: 176
When you hear people like Cam, Jayne and Rob as spearheads for the potential front runners within the bidders, something is diabolicaly wrong :

https://www.watoday.com.au/national/...15-p54t8l.html
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Old 15th May 2020, 01:44
  #1203 (permalink)  
 
Join Date: Jun 2019
Location: Denmark
Posts: 377
I was embarrassed for Cam, he clearly does not have a clue what he is getting the QLD people into.
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Old 15th May 2020, 02:08
  #1204 (permalink)  
 
Join Date: Oct 2013
Location: New Zealand
Age: 67
Posts: 1
Originally Posted by Ragnor View Post
I was embarrassed for Cam, he clearly does not have a clue what he is getting the QLD people into.
He is another dopey Politician who has spent his many years working within the protective Government bubble.. oh $200m, no problem, we can take that from the giant bucket (bucket of cash or bucket of debt, doesnít matter). Wouldnít have a clue. Stick him into a non government Corporation as a CFO and letís see how good he is.I want VA 2 to succeed, but wonít if the Pollies have their hands on it.

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Old 15th May 2020, 02:16
  #1205 (permalink)  
 
Join Date: Jun 2010
Location: Sydney
Age: 37
Posts: 483
Clueless QLD government.
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Old 15th May 2020, 22:37
  #1206 (permalink)  
 
Join Date: May 2005
Location: QLD - where drivers are yet to realise that the left lane goes to their destination too.
Posts: 2,338
Why not also suggest the lucky buyer purchase a fleet of Saturn V rockets as well. Could launch them next to Movie World
Are you privy to some insider information? Are GST one of the 20?
Pimpama
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Old 16th May 2020, 00:55
  #1207 (permalink)  
 
Join Date: Jul 2003
Location: In da Big Smoke
Posts: 2,502
The issue will be that the Government will do what is best for Queensland or the Labor party not necessarily what's best for the airline. You also lose bargaining power when dealing with interstate operations as the government will want as many jobs as possible in Queensland regardless of cost. So that helps the government at an election but raises the cost base of the airline significantly especially once all the big unions get involved.
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Old 16th May 2020, 06:45
  #1208 (permalink)  
 
Join Date: Feb 2012
Location: BBN
Posts: 191
Iím not a business savvy person I truly donít understand administration and how ppl can think all debt be wiped easily and we move on as it was pre covid I would think every big business would do this otherwise.
My question is does Deloitte really have us employees best interests in mind, or, is it best case scenario for them every time they do this.
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Old 16th May 2020, 07:19
  #1209 (permalink)  
 
Join Date: Oct 2006
Location: The Peninsula
Posts: 188
Personally, I think the administrators are doing a fine job. Once the QE money starts making its way though the financial system there wont be any issue with money. The Americans have proved that printing money is not the problem everyone makes it out to be.
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Old 16th May 2020, 09:28
  #1210 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 445
SHVC-
Iím not a business savvy person I truly donít understand administration
.......

Shall, NOT buy into the 'Context' as portrayed - however, this link 'may' prove useful to yourself: https://asic.gov.au/regulatory-resou...for-creditors/

Think:
Number and Value
vis: Secured/Unsecured 'Creditors' and have a really great day.

Rgds
S28- BE
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Old 18th May 2020, 11:36
  #1211 (permalink)  
 
Join Date: Apr 1999
Location: Brisbane
Posts: 451
Originally Posted by Blackout View Post
When you hear people like Cam, Jayne and Rob as spearheads for the potential front runners within the bidders, something is diabolicaly wrong :

https://www.watoday.com.au/national/...15-p54t8l.html
Whoís Jayne? Oh I see....you mean Carla. 😂🤣🤮

Any of the troops associated with an organisation in which that individual is within whiffing distance of an executive role should expect nothing other than gender politics, self-interest and highly paid yet grossly ineffective chair-warming.

It looks more like a sad search for relevance after the wings were clipped and then the dairy went from fresh to sour!!!

🤮

PG
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Old 18th May 2020, 12:12
  #1212 (permalink)  
 
Join Date: Feb 2001
Posts: 176
Originally Posted by Popgun View Post
Whoís Jayne? Oh I see....you mean Carla. 😂🤣🤮

Any of the troops associated with an organisation in which that individual is within whiffing distance of an executive role should expect nothing other than gender politics, self-interest and highly paid yet grossly ineffective chair-warming.

It looks more like a sad search for relevance after the wings were clipped and then the dairy went from fresh to sour!!!

🤮

PG

Is PG against PT?

"Pop-Tarts have a sugary filling sealed inside two layers of thin, rectangular pastry crust. Most varieties are also frosted. Although sold pre-cooked, they are designed to be warmed inside a toaster or microwave oven ..."
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Old 18th May 2020, 12:26
  #1213 (permalink)  
short flights long nights
 
Join Date: Aug 1999
Posts: 3,088
Originally Posted by Blackout View Post
Is PG against PT?

"Pop-Tarts have a sugary filling sealed inside two layers of thin, rectangular pastry crust. Most varieties are also frosted. Although sold pre-cooked, they are designed to be warmed inside a toaster or microwave oven ..."
Google Davy Barry Pop Tarts.. you will love it!
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Old 19th May 2020, 06:37
  #1214 (permalink)  
 
Join Date: Jun 2010
Location: Sydney
Age: 37
Posts: 483
Copy paste article please for us poor folk.
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Old 19th May 2020, 06:53
  #1215 (permalink)  
 
Join Date: Jun 2019
Location: Denmark
Posts: 377
Guess Deloitte optimism early was a little preempt.

‘More cash, please’, says Virgin Australia, as it apparently struggles to keep running

Virgin Australia is understood to have reached out to the federal government on Monday night for emergency funds to keep the airline in operation until the conclusion of the sales process, say sources.

It comes after administrator Deloitte shortlisted four parties on Monday to take through to the second round of a sales process, where final bids are due around June 12.

The hope is to reach a conclusion for a transaction by the end of next month.

However, some in the market believe that the timetable could be overly ambitious and say that with all the stakeholders that need to be consulted, including unions, governments and other creditors, they believe that a sale of Virgin Australia is unlikely to be concluded any time before at least September.

Virgin Australia collapsed last month owing its creditors $6.8bn and fears are mounting that it is running out of cash.

Some say that should Virgin Australia be unable to pay its bills to stay in the air, liquidation might be the only option.

However, it is thought that all parties involved would be resistant to see this outcome.

Qantas has earlier made known that it was expecting a cash burn of $40m a week by June.

Earlier this month, The Australian’s John Durie reported that Virgin administrator Vaughan Strawbridge was borrowing around $200m to help keep operations afloat pending a decision on the sale of the airline.

At that time, it was understood free cash stood at just $30m when Mr Strawbridge was called in.

Now, some say that Virgin Australia has about $100m left in cash, which would likely keep the airline in the air for about two months.

This is with lower fuel costs, leasing payments and the JobKeeper scheme, given that services had been heavily cut back.

One interesting point will be how long Foreign Investment Review Board approval could take following a sale or recapitalisation agreement by one of the suitors.

Typically, approval takes at least 42 days.In terms of a sale, some market experts believe that the amount paid by any suitor would be seen from the approach as to what creditors the buyer chooses to pay to keep certain services operating.

In particular, the aircraft leases.

What changes might come?

Certain routes may be abandoned, yet the Virgin Australia camp has earlier indicated that Deloitte would be eager to see as many jobs preserved as possible.

Government subsidies from states such as Queensland could be offered as an incentive to a buyer, provided that it continues to offer certain services.

In the shortlist to buy the business are BGH Capital, Cyrus Capital Partners, US-based Indigo Partners and Bain Capital.

The approach to government comes after Virgin Australia made a plea to the federal government to secure a loan worth up to $1.4bn to keep the business in operation amid the COVID-19 travel restrictions.

It was a plea which triggered much debate about a government bailout of a commercial carrier that had earlier posted losses.

However, it was later placed in voluntary administration.
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Old 19th May 2020, 07:01
  #1216 (permalink)  
 
Join Date: Feb 2011
Location: Oz
Posts: 725
I think the hard line on preserving Ďas many jobs as possibleí and Ďkeeping the airline in its current formí could potentially be more dangerous than say dropping the axe now and moving on, albeit smaller.

We are all for keeping jobs and so on, of course we donít want people sacked, but if it drags on and on and on, and on, post June, it gets to the point where everyone is out of a job, due to some narrow minded view.

What is most disturbing is the comment that the process is on ĎVirgin Managementísí agendaí. They need to rid themselves of this Management and start again. It seems Virginís Management team will be selecting the winning bidder. Wonít be Bain then, as Carla would wipe them all out.
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Old 19th May 2020, 07:18
  #1217 (permalink)  
 
Join Date: Dec 2001
Location: Brisvegas
Posts: 2,942
So there is a race to sell it before there is no cash.

Inconsistent messages, no job losses, full service but right sized and leaner.
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Old 19th May 2020, 09:21
  #1218 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 445
ĎMore cash, pleaseí, says Virgin Australia, as it apparently struggles to keep ......

Above article Quote/Extract here:
"Virgin Australia is understood to have reached out to the federal government on Monday night for emergency funds to keep the airline in operation until the conclusion of the sales process, say sources."
So (should 'that' be so) in the 'Real' world of Straws/& Camels (it is 'In' a constituted "Voluntary" Administration process, at 'this' time), is 'this' starting to get into the vector of 'freaky'/+ some- yet.....?????

Given- , the 'said' term Solvency and all that goes with that, on more than 1x level/s-

ASIC link here: https://asic.gov.au/regulatory-resou...for-directors/

Extract here:
"An insolvent company is one that is unable to pay all its debts when they fall due for payment. The law prescribes serious penalties for allowing your company to trade while insolvent. You should consult an appropriately qualified specialist insolvency accountant or lawyer, a financial advice service or a registered liquidator about your companyís financial situation as soon as possible if you suspect that you or your company cannot pay debts when they are due."
Just a question.....
Rgds all
S28- BE


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Old 19th May 2020, 09:21
  #1219 (permalink)  
 
Join Date: Aug 2013
Location: Qatar
Posts: 47
If there is no cash, there is no cash and the government would be foolhardy to put anything into Virgin. The administrators know that this is there only very tiny window of opportunity to get any return on the dollar, and if that fails then it's all over and a new entrant will rise from the ashes. All that those circling the remains of Virgin need to do is wait - the price will be much less once the receivers move in.
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Old 19th May 2020, 09:28
  #1220 (permalink)  
 
Join Date: Feb 2001
Posts: 176
Originally Posted by Section28- BE View Post
Above article Quote/Extract here:


So (should 'that' be so) in the 'Real' world of Straws/& Camels (it is 'In' a constituted "Voluntary" Administration process, at 'this' time), is 'this' starting to get into the vector of 'freaky'/+ some- yet.....?????

Given- , the 'said' term Solvency and all that goes with that, on more than 1x level/s-

ASIC link here: https://asic.gov.au/regulatory-resou...for-directors/

Extract here:


Just a question.....
Rgds all
S28- BE

We are all in this 'together' ! Secured, Unsecured ..etc!!

https://www.afr.com/companies/transp...0200519-p54ugi

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