21 April 2020: Virgin Australia Holdings Limited (ASX: VAH) (Virgin Australia Group or Group) has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.The Group’s Board of Directors has appointed Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators of the company and a number of its subsidiaries. Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration.
<snip>

Virgin Australia enters voluntary administration
Virgin Australia's board has appointed Deloitte as voluntary administrators of the company.
<snip>

<snip>

"The sale and subsequent repurchase of part of the frequent flyer business has left it loaded with debt, with most of the fleet and the frequent flyer business locked up by secured creditors."

He said a government bailout, if put in place without insolvency, would "delay and obstruct the necessary restructuring and increase the risk that Virgin ultimately ends up like Ansett".

He also pointed out that about 75 per cent of the debt is believed to be owed to foreign lenders.

"A bailout of Virgin without an insolvency is likely to result in hundreds of millions of dollars being transferred from Australian taxpayers to foreign lenders," Mr Rochford said.
<snip>