AFR - Virgin Administrators come under fire for doubtful forecasts
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looks like Deloitte are trying to get out of their obligations, i thought they are responsible for all running cost whilst they had the reins.
In the Federal Court on Friday morning, the ATO asked for more time to discuss the issue with Virgin’s administrator Deloitte.
It also said it wanted to consider whether there should be any restrictions placed on the waiver of personal liabilities granted by the court to Deloitte for Virgin’s incurred debts during the administration process.
The court will now reconvene next Wednesday to debate or finalise these issues.
The administrators have asked the court to consider that their personal liability be limited where the airline needs to enter into new contracts required to maintain operations during the administration process.
Specifically they want to avoid personal liability for payments under the federal government’s coronavirus wage relief subsidy, JobKeeper
More than 8,200 of Virgin Australia’s 10,000 employees have claimed a total of $24.8m in JobKeeper payments.
On Wednesday the commonwealth Attorney-General also sought to intervene in the proceedings in relation to JobKeeper payments to Virgin staff and the federal government’s Fair Entitlements Guarantee (FEG) scheme, which pays workers’ entitlements if their bankrupt employer cannot.
The administrators have estimated that the value of employee entitlements that would crystallise on the liquidation of the group is approximately $450m.
Virgin sale: Administrators don’t want JobKeeper bill
The Australian Taxation Office is in discussions with the administrators of Virgin Australia to determine to what extent they should be liable for any overpayments made to the airline’s employees under the federal government’s JobKeeper scheme.In the Federal Court on Friday morning, the ATO asked for more time to discuss the issue with Virgin’s administrator Deloitte.
It also said it wanted to consider whether there should be any restrictions placed on the waiver of personal liabilities granted by the court to Deloitte for Virgin’s incurred debts during the administration process.
The court will now reconvene next Wednesday to debate or finalise these issues.
The administrators have asked the court to consider that their personal liability be limited where the airline needs to enter into new contracts required to maintain operations during the administration process.
Specifically they want to avoid personal liability for payments under the federal government’s coronavirus wage relief subsidy, JobKeeper
More than 8,200 of Virgin Australia’s 10,000 employees have claimed a total of $24.8m in JobKeeper payments.
On Wednesday the commonwealth Attorney-General also sought to intervene in the proceedings in relation to JobKeeper payments to Virgin staff and the federal government’s Fair Entitlements Guarantee (FEG) scheme, which pays workers’ entitlements if their bankrupt employer cannot.
The administrators have estimated that the value of employee entitlements that would crystallise on the liquidation of the group is approximately $450m.
Originally Posted by Denied Justice
I really hope you don't mean he's earning $ 20,000 per week ???
I have been told some of the initial buying interest in Virgin has waned. This being the case only about 12 parties are expected to lodge a non binding bid by the deadline of 6 pm today. This number will further dwindle with the passage of time due to the heavy baggage in the group. It could end up with no final bids acceptable to the administrator. In this event the administrator will be looking at liquidation.
Originally Posted by B772
I have been told some of the initial buying interest in Virgin has waned. This being the case only about 12 parties are expected to lodge a non binding bid by the deadline of 6 pm today. This number will further dwindle with the passage of time due to the heavy baggage in the group. It could end up with no final bids acceptable to the administrator. In this event the administrator will be looking at liquidation.
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Anyone know how it works? Is the debt just written off and you’re left with aircraft leases and terminal leases etc? Seems the new QLD Treasurer reckons that V2 would almost start with a clean slate? Seems somewhat improbable!
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I have been told some of the initial buying interest in Virgin has waned.
https://www.brisbanetimes.com.au/bus...15-p54tex.html
So it went from 19 interested "parties" to 8, to 3. I wonder if they were scared off from all the negative press and statements made by various parties, or they never really existed (that is they were only ever tyre kickers and wannabes)?
The figure of 19 was stated somewhere, I am sure................
Its in here, second paragraph:
https://www.smh.com.au/business/comp...13-p54snq.html
The figure of 19 was stated somewhere, I am sure................
Its in here, second paragraph:
https://www.smh.com.au/business/comp...13-p54snq.html
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I would think the 3 (which was always no more than that to begin with) would be genuine. Real question is, are they going to cough up the required figure that Deloitte need to make it work.
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https://www.businessinsider.com.au/v...-points-2020-5
That's a very optimistic view of where this is headed - I would question the source of all this new found evidence of a re-start ???
That's a very optimistic view of where this is headed - I would question the source of all this new found evidence of a re-start ???
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Virgin was a dead duck the second it went to Administration. It was insolvent and the managers waited too long to make the decision. Wind it up now and get the employees their entitlements at least. Another few weeks of jerking about with “investors” and their will be nothing left to divide up.
Now that the initial offers of interest has closed expect to hear rumours from parties that have walked away. One rumour from a party given access to the data room was that Virgin airfares would need to increase by 40% for the airline to be financially viable. The party lost interest upon reaching this conclusion after accepting the fact the new airline would be attacked by both Jetstar and Qantas.
Originally Posted by Con Catenator
https://www.businessinsider.com.au/v...-points-2020-5
That's a very optimistic view of where this is headed - I would question the source of all this new found evidence of a re-start ???
That's a very optimistic view of where this is headed - I would question the source of all this new found evidence of a re-start ???
Bear in mind that Velocity is not only a separate entity but it is also a creditor. You've got to wonder if this is some sort of inter-company square-up of the rumoured to be $200 million debt owed to Velocity by Virgin.
Last edited by MickG0105; 15th May 2020 at 12:47. Reason: Clarification
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I don’t understand how they can re-open bookings when the status of the company is so unresolved.
This has to be positioning for the day of reckoning when the final outcome will be determined as to who gets what.
This is a very complex set of circumstances.
This has to be positioning for the day of reckoning when the final outcome will be determined as to who gets what.
This is a very complex set of circumstances.
If it’s still in administration come September and aircraft are flying wouldn’t Deloitte be responsible for any loss making flights? If so, would it be reasonable to assume they know more then they’re letting on.
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For SHVC.
From the Guardian:
To do this, Strawbridge and the other administrators have also had to convince the federal court judge John Middleton to make extraordinary orders on Friday that allow them to avoid personal liability for the vast bulk of debts the airline continues to incur on their watch.
They’ve also taken legal action in the US to protect the airline’s assets from creditors there.
https://www.theguardian.com/business...es-for-a-buyer
From the Guardian:
To do this, Strawbridge and the other administrators have also had to convince the federal court judge John Middleton to make extraordinary orders on Friday that allow them to avoid personal liability for the vast bulk of debts the airline continues to incur on their watch.
They’ve also taken legal action in the US to protect the airline’s assets from creditors there.
https://www.theguardian.com/business...es-for-a-buyer
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Originally Posted by SHVC
If it’s still in administration come September and aircraft are flying wouldn’t Deloitte be responsible for any loss making flights? If so, would it be reasonable to assume they know more then they’re letting on.
They already have $200m taken out. They will want $300m back for that gesture.
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One of the bidders has made the point that Virgin's liquidity position remained a going concern, with the central question being whether the airline could make it to the second creditors' meeting in August and still be solvent. So, the question is why would anyone bid for the company now, when it would be much cheaper to wait for receivership which would remove all liabilities to creditors and allow a clean slate to start again? 
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Originally Posted by Con Catenator
One of the bidders has made the point that Virgin's liquidity position remained a going concern, with the central question being whether the airline could make it to the second creditors' meeting in August and still be solvent. So, the question is why would anyone bid for the company now, when it would be much cheaper to wait for receivership which would remove all liabilities to creditors and allow a clean slate to start again?
