Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Quickstatus]

it looks like aircraft repo TV series lol

slight difference between an A330 B777 and a crop duster.

 

[BNEFlyer]

I would not be surprised if VA2 was skimmed right back to 737 only, all other types junked.

I would be very surprised if that happened.

 

[BNEFlyer]

slight difference between an A330 and a crop duster.

There was one episode where they went to France and Turkey to repo two A320's from Hellas Jet a few years ago, that was interesting to watch.

 

[HS-TQE]

Singapore Airlines has 'no obligation' to put cash into Virgin Australia. Singapore Airlines will be committed to their sole overseas investment Vistara (India) by putting their money into them - says SQ spokesman.

This might explain why parent company Temasek may be rumoured to be "window shopping" for VAH, rather than their child SIA.

Singapore Airlines Has ‘No Obligation’ To Virgin Australia Cash Infusion, Committed To Vistara

“Singapore Airlines has no requirement or obligation to put in capital for Virgin Australia,” the airline told shareholders ahead of an extraordinary general meeting to raise capital. Singapore Airlines says it has no loans to Virgin Australia, which it owns 20% of.

www.forbes.com

 

[HS-TQE]

I would not be surprised if VA2 was skimmed right back to 737 only, all other types junked.

I'd also to have to agree with others that I'd be surprised if that's the case. The Fokkers from VARA are making money doing FIFO charters.

The widebody market will be non-existent for the next 12-18 months. It may be cheaper to mothball the 77Ws until there's either a market to sell them and/or to restart LAX operations (with a partner - regardless if it's DL or the unlikely scenario of teaming up with UA).

 

[AIRwin]

But can someone with experience in administrations or corporate insolvencies explain how the administrators can continue to pay '9020 staff' as there are 'no plans for (further) redundancies?'

Most have been stood down with no pay (except for JobKeeper payment from the government)...

 

[jakeseven7]

Deloitte have confirmed EIGHT potential interested parties so far.

(Media reporting 20 or so tyre kickers)

 

[woodborer]

Deloitte have confirmed EIGHT potential interested parties so far.

(Media reporting 20 or so tyre kickers)

Yesterdays statement from Deloittes said 8 had signed a non disclosure agreement, and negotiations were continuing with another 12.

https://www.asx.com.au/asxpdf/20200430/pdf/44hf509hydk8yw.pdf

 

[Quickstatus]

Deloitte have confirmed EIGHT potential interested parties so far.

Still tyre kickers.They only signed a non disclosure agreement.

But yes the more the better.

 

[Spongbob]

Still tyre kickers.They only signed a non disclosure agreement.

But yes the more the better.

How many of these will get tired with the process and retire, and are any of them retreads?

 

[tomlee1986]

slight difference between an A330 B777 and a crop duster.

I do understand it is a bit different... but I am just saying that as it does feel a bit the same lol

 

[hydrabyss]

From what I am reading a deal still may need to be done with the Government for Virgin to continue successfully in the future. If it where to be purchased by any foreign bidders this would have to change the Governments chance of this I would have thought. Unless of course they do it through an Australian company.

It also appears Victoria are no longer interested in upsetting Queensland so are no longer interested in making a bid for them to move south. This just leaves NSW maybe they could play a state of origin match to decide the winner.

I would also be interested in knowing how much voting power the 9000 staff get at the creditors voting meeting which appears to have 32 seats.

 

[Quickstatus]

It also appears Victoria are no longer interested in upsetting Queensland

6.5 billion reasons why they are now not interested

 

[woodborer]

From what I am reading a deal still may need to be done with the Government for Virgin to continue successfully in the future. If it where to be purchased by any foreign bidders this would have to change the Governments chance of this I would have thought. Unless of course they do it through an Australian company.

I am sure Nicholas Moore has been appointed by the government for some reason. Unfortunately, I don't think they have been clear what his role is, more than being a go-between.

 

[Quickstatus]

I would also be interested in knowing how much voting power the 9000 staff get at the creditors voting meeting which appears to have 32 seats.

As I understand it and Im an armchair non-expert...

To get a vote a creditor must have their proof of debt accepted by the administrator
A claim is not proof of debt. So an airport saying they are owed $xxmil is not prrof of debt just a claim.

Debt for the purposes of voting is debt that is not covered (in value) by the security over the debt.

So if a secured creditor has a debt of $1mil but the security has a value of $1mil or more then the secured creditor should not vote on value. Otherwise the creditor forfeits that security. The secured creditor can vote on numbers and only on the value of the debt in excess of the security. So if the secured creditor has a proof of debt of $2mil and security is $1mil then the secured creditor is entitled to vote (without losing the security) for the $1mil not covered by the security.

There is a vote by number of hands and vote by value.
For a resolution to be carried it has to be a majority of votes AND the value of debt held by the majority of hands is more than 50% of the total value of the debt. If wither is not a majority the resolution fails

So a vote is really a vote of all the creditors (whether secured or unsecured) and the value of the debts subject to the vote is the unsecured value.

 

[holdenmg]

Hi, Just thought I'd mention VA/Velocity won some 2020 Freddie Awards...

Winner's Circle - Freddie Awards

Middle East & Asia/Oceania
Airline
Program of the Year — Virgin Australia > Velocity
Best Elite Program — Virgin Australia > Velocity
Best Promotion — Virgin Australia > Velocity
Best Customer Service — Virgin Australia > Velocity
Best Redemption Ability — Virgin Australia > Velocity

 

[tomlee1986]

Hi, Just thought I'd mention VA/Velocity won some 2020 Freddie Awards...

Winner's Circle - Freddie Awards

Middle East & Asia/Oceania
Airline
Program of the Year — Virgin Australia > Velocity
Best Elite Program — Virgin Australia > Velocity
Best Promotion — Virgin Australia > Velocity
Best Customer Service — Virgin Australia > Velocity
Best Redemption Ability — Virgin Australia > Velocity

It is great that they won some awards - lets hope they will still be around in 2021! Lol

 

[Quickstatus]

If the company have getting these awards for so many years, why is it under admin?

any chance they could sell the trophies for a few $$?

 

[tomlee1986]

If the company have getting these awards for so many years, why is it under admin?

any chance they could sell the trophies for a few $$?

If I recall correctly... Velocity is under separate management to VA

 

[Quickstatus]

Yes and no
At this point it does not matter who manages what. It’s all about who owns what.