The Australian carrier was already struggling with debt before the outbreak of the coronavirus pandemic, which worsened the situation many times over. Already in April, the airlines unsuccessfully applied for a state loan. The company announced the sale of the American Bain Capital in June.
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Virgin Australia said the sale would pay unsecured creditors 9 to 13 cents a dollar for their claims. Virgin owes a total of approximately A $ 7 billion.
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However, as a result of the sale, the Australian carrier will lose 3,000 jobs and terminate many of its international flights.
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Virgin Australia Group CEO Paul Scurrah said the sale would move the airline closer to abandoning bankruptcy protection and allow it to focus on a future in which it will continue to compete with its larger competitor, Qantas Airways.
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“This result provides security for employees and customers, a return to creditors and opportunities for suppliers and financiers to continue trading,” said Vaughan Strawbridge, a joint volunteer manager, in a statement.
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Virgin airline founder Richard Branson still holds a 10 percent stake.
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