Case studies

Virgin Australia Holdings Limited and subsidiaries

Insolvency case information

Details

Appointment type:

Voluntary Administration

Appointment date:

20 April 2020

ACN:

For full list of ACN's please click here

Appointee(s):

Vaughan Strawbridge, Richard Hughes, John Greig, Salvatore Algeri

Office:

Brisbane

Enquiries:

General enquiries

virginadmin@deloitte.com.au

Supplier enquiries

virginsuppliers@deloitte.com.au

Employee enquiries

virginemployees@deloitte.com.au

Customer enquiries

virgincustomers@deloitte.com.au

Media enquiries

Simon Rushton

Tel: +61 2 9322 5562

Email

URL:

www.deloitte.com/au/virgin

Related links

ASIC
Insolvency information sheets

Help for workers who have recently lost their jobs
Job Services Australia publication

FAQs

Creditors FAQs

Supplier FAQs

Forms

Proof of Debt Form

Proxy Form

Background information

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).

As the Administrators:

  • we assume responsibility for the business and operations of Virgin. Subject to the various COVID-19 restrictions that are in place, we intend to continue trading Virgin’s business whilst we undertake a process to recapitalise the business to bring it out of administration as soon as possible
  • Houlihan Lokey, who were appointed by Virgin prior to our appointment to seek a recapitalisation of Virgin, will be retained to continue this work with management and the Administrators
  • we are responsible for dealing with the staff and suppliers of the business in respect to the ongoing trading of the business from the date of our appointment.

Whilst we assume responsibility for the business, Paul Scurrah and the Virgin management team will continue to be in charge of the operations of the business, with support from our team and us. We are working with management to support the review and roll out role of Virgin’s strategic plans to provide the platform for enhanced profitability and viability of Virgin when COVID-19 impacts break.

In respect of Houlihan Lokey’s appointment, a number of parties have already registered their interest in being involved in seeing Virgin come through this process as a restructured financially secure business, which can re-commence normal operations as soon as possible as the COVID-19 pandemic allows.

We are committed to working with the Virgin and Houlihan Lokey team to ensure the success of this process which is intended to continue the employment of the majority of the current 10,000 strong Virgin team, whilst obtaining the best outcome for all stakeholders.

We will update you as this work progresses and on the expected timetable for the recapitalisation. All communication should continue through existing reporting lines within the Virgin team.

Notice to Creditors of Joint and Several Administrators Application to Court:

On 23 April 2020, Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes in their capacity as Joint and Several Administrators caused to be filed an application pursuant to sections 443B(8) and 447A of the Corporations Act 2001 (Cth) to be heard at 10.15am on Friday, 24 April 2020 before Justice Middleton in the Federal Court of Australia by way of Microsoft Teams (Hearing).

Should you require details of the Hearing or a copy of Exhibit VNS-1 to the Affidavit of Vaughan Neil Strawbridge sworn 23 April 2020, please contact virginadmin@deloitte.com.au.

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