Virgin Australia’s administrators are not expected to reveal details of the 10 potential suitors for the collapsed airline at Thursday’s meeting of creditors, as a challenge from a rival insolvency group on behalf of employees or bondholders looks increasingly unlikely.
Virgin’s directors appointed administrators from Deloitte to the group early last 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.
Administrators will outline the administration process to Virgin’s creditors at the first meeting of creditors on Thursday morning. Virgin owes its creditors nearly $7 billion. Those creditors include workers, aircraft finance houses, banks, bondholders, ticket holders and the trust running the Velocity frequent flier points program.
Deloitte said on Wednesday it would not be releasing any details of any approaches by specific interested parties at the meeting. So far a range of groups have emerged as potential buyers of Virgin, including local private equity outfit BGH (with support from AustralianSuper), Canadian asset manager Brookfield, American airline investor Indigo Partners, American distressed debt specialists Oaktree as well as other groups.