Virgin Australia airline seeks bankruptcy protection
Source: AP
By ROD McGUIRK
CANBERRA, Australia (AP) — Virgin Australia, the nation’s second-largest airline, announced Tuesday it had entered voluntary administration, seeking bankruptcy protection after a debt crisis worsened by the coronavirus shutdown pushed it into insolvency.
Virgin said in a statement to the Australian Securities Exchange that it had appointed a team of Deloitte administrators to “recapitalize the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.”
Virgin is one of the first major airlines to seek bankruptcy protection in response to the pandemic. Virgin’s administrators have taken control of the company and will try to work out a way to save either the company or its business.
The move came after the Australian government refused Virgin’s request for a 1.4 billion Australian dollar ($888 million) loan.
In this April 7, 2020, photo, grounded Virgin Australia aircraft are parked at Brisbane Airport in Brisbane, Australia. Virgin Australia, the nation's second-largest airline, announced Tuesday, April 21, 2020, it had entered voluntary administration as it seeks to strengthen its finances amid a debt crisis. (Darren England/AAP Image via AP)
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