Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Quickstatus]

Looks like Perth Airport are taking matters into their own hands.

And just like that they become secured creditors
Look at the shareholders of PER. I reckon some of them will be interested in the VA carcass

 

[Quickstatus]

VA is owing at least 6.8 Billion dollars... with around 10,000 creditors out there... this is not a good look

Depends on the actual financial figures presented at the creditors meeting

 

[jakeseven7]

Qantas leaps to Virgins defence, not missing the opportunity to sink a boot into the moronic PER airport management!

Qantas has jumped to its troubled rival’s defence after Perth Airport seized a number of Virgin Australia aircraft and blocked them from being moved.

“Even by Perth Airport’s standards, this is extraordinary behaviour,” Qantas said in a statement.

“Protecting your interests is one thing but parking a bulldozer in front of an aircraft while saying you’re ‘working to secure an agreement’ is ridiculous. It’s no way to treat a customer of 20 years. This kind of action is deeply worrying for all users of Perth Airport.”

Perth Airport has seized a number of Virgin Australia aircraft

Qantas has jumped to its troubled rival’s defence after Perth Airport seized a number of Virgin Australia aircraft and blocked them from being moved.

www.news.com.au

 

[Quickstatus]

Qantas has jumped to its troubled rival’s defence

Haha, Qantas only acts in its interest

 

[davidj]

Qantas has jumped to its troubled rival’s defence after Perth Airport seized a number of Virgin Australia aircraft and blocked them from being moved.

Because QFA knows all too well about having cars double parking their aircraft... CBR airport... *cough*

 

[33kft]

"My most inconvenient enemy's enemy is my friend"

 

[Nathant123]

I know its impossible to say but does anyone have even the slightest idea of how long these assessments take in terms of VA's current status. We talking weeks or months? I know most people won't be going anywhere any time soon so its at the very least convenient timing but I'm just curious how long these things normally take to sort out.. if of course it can be sorted out.

 

[oz_mark]

I know its impossible to say but does anyone have even the slightest idea of how long these assessments take in terms of VA's current status. We talking weeks or months? I know most people won't be going anywhere any time soon so its at the very least convenient timing but I'm just curious how long these things normally take to sort out.. if of course it can be sorted out.

The administrator has suggested a couple of months - indicative bids are due Mid May, and binding in Mid June.

Hopefully by late June we'll have an answer.

 

[holdenmg]

The administrator has suggested a couple of months - indicative bids are due Mid May, and binding in Mid June.

Hopefully by late June we'll have an answer.

That's life (that's life), that's what all the people say
You're flying high in April
Shot down in May
But I know we’re gonna change that tune
When we’re back on top, back on top in June

 

[tomlee1986]

Depends on the actual financial figures presented at the creditors meeting

I completely agree.. the figures we have are not definite, but to get into administration, then the debt must be really substantial

 

[tomlee1986]

Ummm why does VA have a pile of broken planes in PER?!

Bigger issue on that one is does VA still have enough $$ to repair them to return them to service? in a simple answer - it appears not

 

[Quickstatus]

No the debts have to be first accepted by the administrator. Who knows what they really are.

Bigger issue on that one is does VA still have enough $$ to repair them to return them to service? in a simple answer - it appears not

Does not work like that. It’s just not about having enough $$ in the bank.
It’s about the ability to pay the debts when they fall due. The board is concerned the company cannot do this so they go into voluntary admin.

The administrators have to work out how best to repay all the debts.

This may involve new owners who buy in but some of the debt is wiped or some kind of similar recapitalisation allowing the company to trade out of the financial trouble - ie use future cash flow to pay remaining debt.
Or this may involve liquidation where the assets are sold to pay for liabilities.

The administrator then puts it to the creditors the likely scenarios and the creditors vote on it.

 

[tomlee1986]

No the debts have to be first accepted by the administrator. Who knows what they really are.

I think at least some debt we can almost guarantee they have is the airport bills... and it wont be a small amount either

 

[Borisdog]

Qantas leaps to Virgins defence, not missing the opportunity to sink a boot into the moronic PER airport management!

Qantas has jumped to its troubled rival’s defence after Perth Airport seized a number of Virgin Australia aircraft and blocked them from being moved.

“Even by Perth Airport’s standards, this is extraordinary behaviour,” Qantas said in a statement.

“Protecting your interests is one thing but parking a bulldozer in front of an aircraft while saying you’re ‘working to secure an agreement’ is ridiculous. It’s no way to treat a customer of 20 years. This kind of action is deeply worrying for all users of Perth Airport.”

Perth Airport has seized a number of Virgin Australia aircraft

Qantas has jumped to its troubled rival’s defence after Perth Airport seized a number of Virgin Australia aircraft and blocked them from being moved.

www.news.com.au

Not paying your bills is a reasonable way of pissing off someone you’ve had a business relationship with for 20 years also.

I‘ve worked for and with businesses who are best described as “tardy” when it comes to paying for what they’ve already received, but don’t they squeal when the vendor finally loses patience.

Can’t say it’s a tactful move from PER, but I understand why.

I also bet they’re not the only vendor who’s been strung along with a large unpaid bill.

 

[westsurf]

Further info. Perth Airport blocks Virgin planes on tarmac as a lien for unpaid fees of approx $16M.

 

[Quickstatus]

I think at least some debt we can almost guarantee they have is the airport bills... and it wont be a small amount either

Dont know. The debt first has to be accepted by the administrator as an incurred debt. Debt can be negotiated, but what the administrator can or do is to favour one creditor over another subject to legislation regarding security of debt or employee entitlements.

PER is just trying to turn their unsecured debt into a secured debt. Under normal circumstances (normal trading) that’s OK and may be allowed under the terms of their contract with the airline - (the airport taking possession until debt repaid). But doing it while under administration I’m not sure whether it will legally put them into the secured creditors ranks.

pension and industry super funds own most of the major airports in Australia. The mums and dads investors will lose out. PER airport are just protecting their interests.
In situations like this, being nice never gets your money back.

Further info. Perth Airport blocks Virgin planes on tarmac as a lien for unpaid fees of approx $16M.

Already discussed in this thread last night - see up thread

 

[jakeseven7]

AFR says Velocity have loaned up to $200m to VA.

Failed Virgin tapped frequent flyer trust for loan - NewswireNow

The largest debt by value is the $2.6 billion owed to 26 lenders under secured corporate debt and aircraft financing facilities; by number, Virgins more than 9000 employees are due about $450 million in entitlements. It is unclear whether Velocity Frequent F…

www.newswirenow.com

Well well well they buried this one deep.

PS: Oh don’t worry you little VFF members your moneys in a trust, we cannot touch it, it’s a different company to VA, no stress, all good!

(fogets to finish sentence: Oh yea we made the trust loan us $200 million because well we own the trust and it is ours not yours)

 

[Spongbob]

Well well well they buried this one deep.

PS: Oh don’t worry you little VFF members your moneys in a trust, we cannot touch it, it’s a different company to VA, no stress, all good!

(fogets to finish sentence: Oh yea we made the trust loan us $200 million because well we own the trust and it is ours not yours)

And we recently paid double the price to reacquire the part of VFF we sold it for only a few years ago.

 

[Quickstatus]

At creditors meetings do they vote on value of debt or number of creditors?

 

[serfty]

...

Further info. Perth Airport blocks Virgin planes on tarmac as a lien for unpaid fees of approx $16M.

Already discussed in this thread last night - see up thread

Well, the $16M figure is new to me ... although a relatively small amount in the scheme of things ...