Aviation

Virgin update: Creditors owed $6.8bn, suitor’s “Team Australia bid” and Scurrah’s CEO challenger

There have been quite a few interesting developments in the administration process of Virgin Australia, as the airline’s future hangs in the balance.

After it was originally thought that Virgin’s debt pile was around $5 billion, the administrators at Deloitte have revealed that the total amount owing to creditors is more than $6.8 billion.

According to an affidavit lodged to the Federal Court by Deloitte’s Vaughan Strawbridge last week, secured lenders are owed approximately $2.3 billion, unsecured bondholders are owed approximately $2 billion, trade creditors are owed approximately $167 million, aircraft lessors are owed approximately $1.9 billion, landlords are owed approximately $71 million, and employees are owed approximately $450 million.

Deloitte has identified that Virgin has more than 10,000 known creditors in total (including approximately 9,020 employees), but expects this number to increase to over 12,000 as more information becomes available.

There has been a bit of speculation around whether unions representing workers will look to try and appoint a rival firm such as KordaMentha to ensure a fair administration process, given Deloitte recently disclosed it had worked with Virgin on other advisory and restructuring work in the past.

However, the Australian Federation of Air Pilots, the Transport Workers Union and the Australian Licensed Aircraft Engineers Association told The Australian that they were satisfied with Deloitte leading administration proceedings.

Meanwhile, one of Virgin’s suitors has told Deloitte, as well as the federal and state governments, that it will provide certainty to the carrier’s staff if its “Team Australia” bid is successful.

According to The Australian Financial Review, BGH Capital has also warned the relevant parties that other private equity firms and hedge funds from overseas may not show as much mercy to Virgin employees.

To further prove BGH is serious about a potential play for Virgin, The Australian reported that firm has has tapped advisory specialists Moelis for a possible recapitalisation of the airline.

It’s been speculated that BGH will make a move for Virgin as part of a consortium rather than going solo, with AustralianSuper popping up in multiple media reports as a likely partner.

And, finally, it appears Paul Scurrah (pictured above) could have a challenger for the top role at Virgin following the administration process, with John Thomas telling the AFR he would throw his hat in the ring for the CEO position if it became available.

Thomas is no stranger to Virgin, having led the airline’s domestic and international operations between 2016 and 2017.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Technology

“Absolute game-changer”: Tour Atlas unveils white-label search engine for agents

Tour Atlas has been keeping busy during lockdown, launching what it thinks is a game-changing new service.

Share

CommentComments

Hotels

Hotel Wrap: Pier One Sydney Harbour’s special industry offer, Raffles Bali opens + MORE

Grab your knife and fork, because we’ve got news for all tastes and budgets with this week’s smorgasbord of hotel delights.

Share

CommentComments

Technology

INFOGRAPHIC: What travel might look like in a socially-distant world

We love an infographic here at Travel Weekly, mainly because it means we don’t have to write as much and can put our feet up for a bit.

Share

CommentComments

Cruise

Queensland welcomes new cruise operator on Sunshine Coast

Here’s some swell cruise news that is sure to lift the spirits of industry professionals and travellers alike.

Share

CommentComments

Aviation

New rule in place at Sydney Airport after passengers disembark Melbourne flight without COVID-19 screening

by Christian Fleetwood

A screening bungle at Sydney Airport has prompted a shift in the way NSW arrivals are screened going forward. Click here to read what you can expect.

Share

CommentComments

Destinations

Visit California gets cheeky with new text message campaign

The US state is sliding into travellers’ DMs with a string of text messages that seem more like they’re from a clingy ex than a destination.

Share

CommentComments

Aviation

Desperate travellers board flight to… nowhere

If you thought you were missing travel, wait until you see what avid travellers have been up to in Taiwan.

Share

CommentComments

Tourism

Australia’s inbound and domestic tourism spend falls by $6 billion

We’ve broken down Tourism Research Australia’s quarterly snapshot so that you don’t have to. And by “broken down”, we mean we skim read it and took a punt.

Share

CommentComments

Technology

Sabre announces exec team changes

Sabre has made some changes to its executive leadership team. The travel tech player, that is – not the printer company from the TV show The Office.

Share

CommentComments

Travel Agents

Travellers Choice re-imagines annual roadshow

Travellers Choice’s ‘Member Meetings’ are always vital gatherings, but this year’s events are sure to be remembered as the most important in the group’s history… and certainly the most unusual.

Share

CommentComments

Wholesalers

Former Intrepid boss teams up with doco maker to launch new travel company

The new company aims to make travellers feel as though they are on shoot for a documentary, minus the camera crew. However, that’s not to say selfie sticks and GoPros are off limits.

Share

CommentComments

Destinations

TEQ says Queensland is ‘Good to Go’ in new national campaign

Tourism and Events Queensland has unveiled a new campaign which, thankfully, doesn’t feature Pauline Hanson or any Irukandji jellyfish.

Share

CommentComments