Virgin Australia

Virgin Australia Holdings Limited (ASX:VAH) (subject to deed of company arrangement DOCA)) operates a domestic and international passenger and cargo airline business and the Velocity Frequent Flyer (Velocity) program.

Trading halt and voluntary administration

On 20 April 2020, Virgin Group was placed into administration. Administrators from Deloitte were appointed to 41 companies.

On 26 June 2020, the administrators entered into a sale and implementation deed with Bain Capital to sell and recapitalise the Virgin Group, which subsequently assumed the economic risk for the business and injected interim funding to keep trading until the sale completes.

On 25 August 2020, the administrators presented Bain’s DOCAs proposal to creditors, recommending all creditors of the Virgin Group accept the DOCAs.

On 4 September 2020, at the virtual creditors’ meeting, creditors approved the DOCAs, which are estimated to give ordinary unsecured creditors (including bondholders owed circa $2b) a dividend of 9-13 cents in the dollar; employee entitlements will be covered in full; and customers credits will be honoured under new ownership. Creditors also approved the current committee of inspection (COI) members be members of a COI during the DOCA and subsequent creditors’ trust periods.

On 25 September 2020, Virgin Group entities executed the DOCAs and the administrators became deed administrators.

Updates on the progress of this administration, visit Deloitte’s website:

ASIC’s role

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

Last updated: 20/10/2020 04:45