FILE PHOTO: Vacationers stand at a Virgin Australia Airways counter at Kingsford Smith Worldwide Airport, following the coronavirus outbreak, in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott/File Photograph
SYDNEY (1) – Virgin Australia Holdings (VAH.AX) is getting ready to enter voluntary administration, the Sydney Morning Herald reported on Monday, citing unnamed sources, with the cash-strapped provider unable to climate the coronavirus disaster due to its debt.
The newspaper mentioned the airline’s board of administrators was assembly on Monday and an announcement of it going into administration was “imminent”.
Virgin Australia declined to touch upon the report.
Choices obtainable beneath Australia’s voluntary administration regime embrace asset gross sales, an settlement with collectors, debt write-offs or a winding up of the corporate.
The corporate’s debt pile stood at A$5 billion ($3.2 billion) at Dec. 31.
Australia’s second-biggest provider final week suspended buying and selling in its shares to proceed talks on monetary assist and restructuring options to assist it take care of the coronavirus disaster.
It had requested a mortgage of A$1.four billion from the federal government and entered debt-restructuring talks with collectors.
Virgin’s shares are tightly managed by a bunch of international carriers, together with Singapore Airways (SIAL.SI), Etihad Airways and Chinese language conglomerate HNA Group, which have additionally suffered a pointy deterioration in income due to the coronavirus pandemic.
Reporting by Jamie Freed; Modifying by David Goodman