Do note the VA that took the pensioner's money and formed a contract with no longer exist - the current VA that you're referring to do not hold the $15k the pensioner paid. Presumably they're also not booking on the UA codeshare due to the costs involved.
Those debts were on the books that Bain paid for so no, not really. They possibly could have tried to write off those credits - but they didn’t.
The courts and majority of the creditors agreed on providing the credits as part of the sale to Bain.
Except she bought the tickets before Virgin went into administration which in effect clears the debt and deck to restart.
Except you can’t use it on codeshare flights (with a VA code). Another level of detail that would have been clear as mud to the lay person. Really poor form TBH.
As an unsecured creditor she wouldn’t have received anything like the $ value of her booking even if that was successful.
Don't disagree - but simply asking for a refund since 'service not provided' from an effectively different entity is not agreeable here.
I've used them. As recently as this week. It's a little restrictive but not excessive IME and the fares were not inflated relative to what was available without redeeming a future flight credit. ZQN and the pacific destinations probably are difficult but you can understand why. They're obviously the most popular.
I do the same for my customers. Actually, I do it on a pretty regular basis. The difference, as I see it, is that this lady, as unfortunate as the circumstances are, was NOT a customer of their business. Never was.
No they absolutely cannot. The company went into administration and an administration process is very legally in depth which in the case of Virgin Australia was purchased by Bain Capital in principle under a DOCA (Deed Of Company Arrangement).
Yes but if you keep the same name you want to keep the goodwill.
No they absolutely cannot. The company went into administration and an administration process is very legally in depth which in the case of Virgin Australia was purchased by Bain Capital in principle under a DOCA (Deed Of Company Arrangement).
In the purchase of the company would include lots of stipulations etc. which have gone through the court system.
The administration process is one which allows company's to terminate contracts without full liability and also legally doesn't have to pay any creditor 100% of it funds back if they can't be recovered.
The Future Flight Credits are interesting. As part of the DOCA these were included, and subsequently they have been extended though there was no legal requirement to do so (nor did the ACCC ask them to do so).
How these FFC's sit on Virgin Australia's balance sheet would be interesting. They are not a source of income as the company during or post administration never received any income. However, in turn the full balance of them most likely is not on the company's liabilities as it is technically leveraging the costs by releasing certain amounts per flight. Though of course when flown the airline has to pay the relevant airport fees, it can probably dodge around the GST element though this must be a liability of some sorts.
Those who think that Virgin Australia will make a financial gain from unused FFC's are really misleading. If you receive no money and provide a service for no cost, you have lost money. The company currently trading as Virgin Australia did not receive your money.
I appreciate most people don't understand the legal in or outs of company administration, but really it's probably best not to comment on what you think a company can or can't do unless you are going to take your comments to court or the ACCC in which you would be dismissed by both.
Virgin Australia | Deloitte Australia | Restructuring, Insolvency & Financial Advisory
Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes were appointed Joint and Several Administrators (Administrators) of Virgin on 20 April 2020, pursuant to the provisions of Section 436A of the Corporations Act 2001 (Act).www.deloitte.com
Correct a credit which always had an expiry date.
I agree. But that goodwill is valued. The price they paid for that goodwill doesn't justify offering a blank cheque for anyone who was hard done by from the collapse of the previous business.
Correct! And for everything else, there's gofundme. Oh, oops Mastercard ;-)
