Virgin Australia's dodgy $150 million 'loan' to itself
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Virgin Australia's dodgy $150 million 'loan' to itself
Reports began circulating late last week that Virgin took a loan of up to $200 million from Velocity, and Velocity has now confirmed this. The details are pretty shabby.
It was a $150 million loan handed over to Virgin in 2014, back in the Borghetti days, before Affinity Partners paid Virgin $335 million for a 35% stake in the loyalty program. FWIW, that same year, Virgin "recorded an overall loss of $355 million". This was towards the end of Borghetti's "game change" plan which was super heavy on spending, and also the same year he took a 60% interest in Tiger, so imagine how bad the books would have looked without that $150m + $335m.
Anyway, Velocity is spinning this loan as "an investment", the loan was never repaid and so interest has been mounting up, now it's got to be around $200 million and Velocity has decided to list itself as a creditor. You can't imagine Velocity getting much money back on this, so that's $200 million worth of Velocity points gone up in smoke. So much for Virgin and Velocity claiming "you points are safe".
More sordid details on this cosy arrangement at https://www.executivetraveller.com/n...-from-velocity
It was a $150 million loan handed over to Virgin in 2014, back in the Borghetti days, before Affinity Partners paid Virgin $335 million for a 35% stake in the loyalty program. FWIW, that same year, Virgin "recorded an overall loss of $355 million". This was towards the end of Borghetti's "game change" plan which was super heavy on spending, and also the same year he took a 60% interest in Tiger, so imagine how bad the books would have looked without that $150m + $335m.
Anyway, Velocity is spinning this loan as "an investment", the loan was never repaid and so interest has been mounting up, now it's got to be around $200 million and Velocity has decided to list itself as a creditor. You can't imagine Velocity getting much money back on this, so that's $200 million worth of Velocity points gone up in smoke. So much for Virgin and Velocity claiming "you points are safe".
More sordid details on this cosy arrangement at https://www.executivetraveller.com/n...-from-velocity
Your points are safe. They’re just worthless.
Sunfish QC will tell us that the loan was all in order and that the accounts didn't need to reflect this or the loan agreement is invalid and where it says 'pay it back' was trivial and could be ignored just like the PH airport contract...
Surprised you didn't mention that you have a niece whos a QC. But maybe you should go to her and ask her about contract and get her to explain it like you are a 5 year old.
No such word in the English language as "whos" that I'm aware of. Please enlighten me Mr Ratt-Man!
OH NO I missed and apostrophe while typing. It's the end of the world. Honestly prefer to misstype than, like you did, show how little you know about contract law, then try and ride on the coat tails of someone else.
