Virgin Australia owes thousands of creditors nearly $7 billion as fresh details of the failed airline’s finances shed light on how difficult it would have been for the carrier to strike any rescue deal.
The airline’s directors put the company into administration this week after it failed to pull off a restructure. Virgin, like airlines around the world, has shut down the vast majority of air travel as a result of COVID-19 travel restrictions.
The administrators are now working hard on finding new owners for Virgin and have said at least 10 groups are interested in being a part of the rebirth of the airline. Private equity group BGH Capital is in the race, while transport billionaire Lindsay Fox has also been mentioned as a possible bidder, along with various international interests.
The new figures were made available in court documents filed by Virgin’s administrators at Deloitte ahead of a Federal Court hearing on Friday to discuss minor elements of the administration. The report shows that administrators have identified 10,247 known creditors in total (including approximately 9020 employees).