Virgin Australia Financially Secure? [Now in Voluntary Administration]

[Melburnian1]

..This whole administration process has more leaks than a colander.

The way it's going it'll intensify in the next few days.

Sometimes though it's more effective to have a 'quiet word' in the ear of 'important persons' like MPs.

 

[moa999]

And sometimes a leaked letter to create additional pressure from other stakeholders will assist

 

[oz_mark]

It's also been reported in the AFR with their article stating that the letter was sent to the offices of Morrison, McCormack, Frydenberg and Cormann. Though Deloitte has confirmed a letter was sent, it was a "source close to the sale" that gave the particulars, so could be anyone from those offices or from Deloitte.

This whole administration process has more leaks than a colander.

The leaking of requests to the government predates the administration process.

 

[BNEFlyer]

It's also been reported in the AFR with their article stating that the letter was sent to the offices of Morrison, McCormack, Frydenberg and Cormann. Though Deloitte has confirmed a letter was sent, it was a "source close to the sale" that gave the particulars, so could be anyone from those offices or from Deloitte.

This whole administration process has more leaks than a colander.

It would have to be someone working closely on the sale, or at least privy to that kind of info with friends in the media.

 

[travel_bug]

The leaking of requests to the government predates the administration process.

True, however quite a bit of that was outwardly open to the public anyway through Branson’s open letter and VA staff making representations to the media in April calling for Gov assistance.

There were less leaks in that the VA told everyone what they were asking for anyway as they thought public support would fall on their side and assist.

 

[jakeseven7]

There were less leaks in that the VA told everyone what they were asking for anyway as they thought public support would fall on their side and assist.

They thought wrong.

But our kiwi cousins are helping put pressure on Nanny Anna to open borders now - which will only help both minimal operation VA1 AND the faster recovery of whatever VA2 turns out to be.

Tourism Minister backs NZ Deputy PM's comments travel bubble held up by 'slowest state in Australia'

Leaders across the Tasman Sea are becoming frustrated at Australia's delays in opening state borders — and Tourism Minister Simon Birmingham agrees.

www.abc.net.au

 

[BNEFlyer]

They thought wrong.

But our kiwi cousins are helping put pressure on Nanny Anna to open borders now - which will only help both minimal operation VA1 AND the faster recovery of whatever VA2 turns out to be.

Tourism Minister backs NZ Deputy PM's comments travel bubble held up by 'slowest state in Australia'

Leaders across the Tasman Sea are becoming frustrated at Australia's delays in opening state borders — and Tourism Minister Simon Birmingham agrees.

www.abc.net.au

Jacinda has said neither country is ready for travel just yet. Scott Morrison can make the decision that only those with open borders can be in the travel bubble when NZ is ready if he wants to. It's possible Queensland will be open to other states at the end of this month, or it could be after school holidays, we'll find out in a few weeks.

 

[RAM]

Jacinda has said neither country is ready for travel just yet. Scott Morrison can make the decision that only those with open borders can be in the travel bubble when NZ is ready if he wants to. It's possible Queensland will be open to other states at the end of this month, or it could be after school holidays, we'll find out in a few weeks.

With around 400 CV positive people still in NSW (known cases) I suspect it will be a while yet before Qld allows VA, Q etc to fly interstate for 'tourist' business. Cannot understand why Qld allows Qlders to go for a surf at Northern NSW beaches (where they could get infected possibly) and then lets them drive back in? Essential workers = OK, surfers = stupid.

No, I am not saying surfers are stupid....

 

[drron]

With around 400 CV positive people still in NSW (known cases) I suspect it will be a while yet before Qld allows VA, Q etc to fly interstate for 'tourist' business. Cannot understand why Qld allows Qlders to go for a surf at Northern NSW beaches (where they could get infected possibly) and then lets them drive back in? Essential workers = OK, surfers = stupid.

No, I am not saying surfers are stupid....

Though NSW Health only estimates the number of positive cases.As they only interview a patient 21 days after testing positive then they admit active case numbers are not neccessarily correct and many will not be infectious.
"Recovery is based on self-reported information when the person is interviewed 21 days after the onset of symptoms. Cases who are within 21 days of symptom onset or with no information available on recovery are not included in this table. The time an individual takes to recover depends on many factors including age and other underlying health conditions. Cases who have been infected earlier in the outbreak have had more time to recover than cases who developed symptoms 3 weeks ago. For these reasons, numbers may fluctuate due to ongoing public health investigations and recovery rates should not be directly compared between LHDs."

And they have only had 1 case of local infection in the last 2 weeks.
https://www.health.nsw.gov.au/Infectious/covid-19/Pages/stats-nsw.aspx

 

[Melburnian1]

Yet another article in 'The Oz' on Wednesday 10 June, this time largely about Bain Capital:


'...An administrator is always expected to choose the party that offers a level of commitment on the funding side over a higher price.

However, the talk in the market is that Bain’s offer was also the largest from a monetary perspective, potentially offering to keep more of the airline intact than other groups.

The Bain bid has been described as being capable of completion subject to contract terms.

Yet the thinking is that Bain will ultimately be buying a much smaller airline than the administrator is trying to sell the group.

Final bids from the last two bidders, Cyrus Capital Partners and Bain Capital are due on June 22 for the airline that collapsed during the coronavirus crisis in April with $6.8bn of debts owing.

Some observers still are not convinced Virgin Australia ends up with a buyer by the end of the month and say it could be a broken process, winding up with no deal.

This could play well into the hands of a group such as the listed Alliance Aviation....'

 

[oz_mark]

True, however quite a bit of that was outwardly open to the public anyway through Branson’s open letter and VA staff making representations to the media in April calling for Gov assistance.

There were less leaks in that the VA told everyone what they were asking for anyway as they thought public support would fall on their side and assist.

From what I read, they told everyone once they had become aware of a leak. They didn't really want to

 

[HS-TQE]

I do wonder with the recent developments in the VAH administration/selling process if this is going to end up as "another Tesna" again, leading to VAH ultimately filing liquidation.

Tesna (Lew) pulled out for AN mk2 (or was it AN mk3?) after they couldn't get government support either.

 

[antycbr]

I do wonder with the recent developments in the VAH administration/selling process if this is going to end up as "another Tesna" again, leading to VAH ultimately filing liquidation.

Tesna (Lew) pulled out for AN mk2 (or was it AN mk3?) after they couldn't get government support either.

Possible but then the government will have a domestic monopoly on their hands. There’s no Virgin Blue in the wings this time unless you can scale up either Rex or Alliance which would most likely need government intervention to survive against QF.

I think that the Administrators are going to try this approach to see if the government will throw them some relief. Slot relief wouldn’t cost anyone anything it’s not like there’s a queue of other people lining up to use them.

Ultimately it will be a political calculation and depends what QF are also asking for in private. The media are also staring to look at some of the assistance to Rex.

 

[Melburnian1]

... The media are also staring to look at some of the assistance to Rex.

Ingenious pun. They may well be 'staring' at data but are probably also 'starting' to examine it.

 

[BNEFlyer]

With around 400 CV positive people still in NSW (known cases) I suspect it will be a while yet before Qld allows VA, Q etc to fly interstate for 'tourist' business. Cannot understand why Qld allows Qlders to go for a surf at Northern NSW beaches (where they could get infected possibly) and then lets them drive back in? Essential workers = OK, surfers = stupid.

No, I am not saying surfers are stupid....

Queenslanders can travel to NSW or Victoria for any purpose and be allowed back in without quarantining provided they don’t visit a hotspot (of which there’s only 3 in Victoria). But for QF and VA to fly them, depends on what happens after the government support ends next month.

 

[jakeseven7]

I find NoNews articles entertaining sometimes....:


VIRGIN VULTURES WANT YOUR MONEY
The two bidders for Virgin Australia have got their hands out for a handout. And it’s your money they’re after, writes Terry McCrann.

No Cookies | Herald Sun

No Cookies

www.heraldsun.com.au

 

[BAM1748]

And sometimes a leaked letter to create additional pressure from other stakeholders will assist

Indeed, create a crisis gets govt action.

 

[BAM1748]

They thought wrong.

But our kiwi cousins are helping put pressure on Nanny Anna to open borders now - which will only help both minimal operation VA1 AND the faster recovery of whatever VA2 turns out to be.

Tourism Minister backs NZ Deputy PM's comments travel bubble held up by 'slowest state in Australia'

Leaders across the Tasman Sea are becoming frustrated at Australia's delays in opening state borders — and Tourism Minister Simon Birmingham agrees.

www.abc.net.au

Just this morning, while you might think Qld is slow there is a reason.

Protester and toddler at childcare centre among eight new coronavirus infections in Victoria

Chief Health Officer Brett Sutton says the man in his 30s was unlikely to have acquired the virus at the Black Lives Matter demonstration, but was potentially infectious on Saturday.

www.abc.net.au

 

[Melburnian1]

Just this morning, while you might think Qld is slow there is a reason.

Protester and toddler at childcare centre among eight new coronavirus infections in Victoria

Chief Health Officer Brett Sutton says the man in his 30s was unlikely to have acquired the virus at the Black Lives Matter demonstration, but was potentially infectious on Saturday.

www.abc.net.au

The sharemarket is also down this morning. While there may be multiple reasons including what occurs overseas, markets intensely dislike uncertainty. This stupid protester delivers that in spades. Perhaps a guardian angel was circulating and no one else will be infected as a result, but it's a waiting game.

This isn't good news for anyone operating an airline.

 

[Melburnian1]

Yet another VA 'The Australian' article, this time (again) re the bondholders:


'Representatives of Virgin’s unsecured bond and note holders, who are owed around $2bn, have been allowed to access the airline’s data room by administrator Deloitte’s Vaughan Strawbridge in a move which could potentially give them greater negotiating power over the airline’s future.
The Australian understands the group, represented by advisory firm Faraday, has been invited by Mr Strawbridge to have access to sensitive commercial information about Virgin which would give it more context to assess the nature of the bids offered by short-listed parties, Bain Capital and New York hedge fund Cyrus.

It would also give it more negotiating power to propose other options, including a potential recapitalisation of the airline which could see the note and bond holders continue to remain as creditors for the life of their current bonds, some extending out to 2024, rather than losing most of their money now, and having to do a deal when Virgin is at a low point.

Faraday represents the biggest group of unsecured creditors, ranging from more than 5000 “mum-and-dad” retail investors to about 30 major institutional bond holders.

The unsecured bond holders, some of whom invested in a $325m note raising launched by Virgin last November, are worried they could lose almost all their money in the current negotiations unless they can take a more proactive stance in negotiations.

Some Virgin notes are now trading at around 15-20c in the dollar..'.