Virgin Australia

Virgin Australia Holdings Limited (ASX:VAH) (Administrators Appointed) operates a domestic and international passenger and cargo airline business and the Velocity Frequent Flyer (Velocity) program.

Trading halt and voluntary administration

On 14 April 2020, Virgin Australia’s securities were placed in a trading halt at Virgin’s request.

On 20 April 2020, the board of directors appointed Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators of 38 companies within the Virgin Australia Group (Virgin Australia).

The administrators are working quickly to restructure and recapitalise the business. Their intention is for the business to emerge from administration as soon as possible. The administrators are seeking interest from parties to participate in the recapitalisation of the business and its future, and there have been several expressions of interest so far.

Updates on the progress of this administration, visit Deloitte’s website: www.deloitte.com/au/virgin.

What is voluntary administration?

Voluntary administration is where the directors of a financially troubled company or a secured creditor with a security interest over most of the company’s assets appoint an external administrator called a ‘voluntary administrator’.

The administration period allows the voluntary administrator time to consider the most appropriate strategy to maximise the company’s value. This may include restructuring the business, capital injection and/or selling the business and its assets.    

The role of the voluntary administrator is to investigate the company’s business, property, affairs and financial circumstances, to report to creditors. Voluntary administrators then recommend to creditors whether the company should enter into a deed of company arrangement, if one is proposed, go into liquidation or for the administration to end and control of the company be returned to the directors.

ASIC’s role

ASIC has been in contact with the voluntary administrators and we will continue to monitor the progress of this matter closely.

In due course, the voluntary administrators will report to ASIC any possible offences by people involved with the company, and we will assess the reports to consider our own investigations and action, if any.

This approach avoids ASIC's investigations diverting resources of the company at the early crucial stages of an administration. However, ASIC can initiate an investigation at any time.

Last updated: 27/04/2020 12:14