20 buyers now circling Virgin Australia
An administrator cannot cancel contacts unless there is a clause in the contact permitting the company to void the contract if it enters administration. These are known as ipso facto clauses. Such clauses that work in favour of the party entering administration are extraordinarily rare. Ipso facto clauses normally run the other way, they typically provide certain rights of relief to one party if the other party enters administration. However a recent amendment to the Corporations Act 2001 (specifically section 451E Stay on enforcing rights merely because the company is under administration etc.) now limits the enforcement of certain rights arising from ipso facto clauses.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
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Richard Branson is still in the game for Virgin V2 . According to the AFR he is potentially linked to Cryrus Capital Partners (who were one of the backers of Virgin America) and The Australian says he is linked to Bain in the final four contenders identified by Deloittes. The bad smell will not go away it appears and the Virgin name will still be on the tail.
Wouldn’t surprise me in the least. Branson is chasing ‘money for jam’. Allowing the Virgin name and logo to remain on the aircraft and in the company earns him millions and millions of dollars per year for not having to lift a finger. Australia can do better than that. This is VA’s opportunity to start fresh with a clean sheet of paper. Why should the new company be connected to that pathetic git from the tax free haven of Necker island? VA mk 2 can surely do better than that. Branson is outdated, he isn’t an iconic brand. He is an opportunist and isn’t need in our country.
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An administrator cannot cancel contacts unless there is a clause in the contact permitting the company to void the contract if it enters administration. These are known as ipso facto clauses. Such clauses that work in favour of the party entering administration are extraordinarily rare. Ipso facto clauses normally run the other way, they typically provide certain rights of relief to one party if the other party enters administration. However a recent amendment to the Corporations Act 2001 (specifically section 451E Stay on enforcing rights merely because the company is under administration etc.) now limits the enforcement of certain rights arising from ipso facto clauses.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
Rex plan looking the best by far now, but how long before they have enough aircraft to fly to the regions like CNS ?
Wonder if they fast tracked, if V2 doesn't happen, how quickly they could be flying B738s around, probably ex VA, wirth ex VA crews.
There is NO fast tracking with CASA. Many many months at a minimum. Rex would have to stand up an entire Operational structure that would more or less be separate to its current operation, and then have it approved by CASA.
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An administrator cannot cancel contacts unless there is a clause in the contact permitting the company to void the contract if it enters administration. These are known as ipso facto clauses. Such clauses that work in favour of the party entering administration are extraordinarily rare. Ipso facto clauses normally run the other way, they typically provide certain rights of relief to one party if the other party enters administration. However a recent amendment to the Corporations Act 2001 (specifically section 451E Stay on enforcing rights merely because the company is under administration etc.) now limits the enforcement of certain rights arising from ipso facto clauses.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
A liquidator can disclaim a contact outright. The best that an administrator can do is repudiate contracts requiring performance by the company that the administrator cannot meet, such as the payment of monies that the administrator does not have. A repudiated contract is not cancelled, it is still in effect and the counterparty can sue for breach of it.
Informed people are now asking how long Qantas can remain solvent. same with Universities. The suggestion is in all cases whole layers of management will need to be removed. The corollary to this is that the MBA is a dead letter; actual experience of that which you are managing will again (shock horror) become a prerequisite for senior roles......and perhaps Directorships.
Sunfish can’t help it. Not only Is he back, but banging on about Qantas and universities on a thread supposedly about Virgin. ADHD?
Qantas is already talking about restarting domestic flights in July STGA.. They are in a very different position to VA. BTW someone must have found some heavy duty disinfectant to apply to the dummy.