Virgin Australia administrators release formal Report to Creditors.
Deloitte has this morning released the highly anticipated Report to Creditors of Virgin Australia, detailing the estimated payout to employees and unsecured creditors of the airline under the proposed sale of the carrier to Bain Capital.
If creditors vote in favour of the Bain Deed of Company Arrangement (DOCA), Deloitte is estimating there will be between $462 million and $613 million available to pay unsecured creditors, which would allow for them to receive between 9c and 13c in the dollar.
The proposal will also see employees receive 100% of their entitlements, with those continuing with the airline to be paid in the normal course of business, while those who are leaving the group will be paid in full without having to submit a claim.
If the Bain DOCA is approved, Deloitte estimates unsecured creditors would receive their payments within six to nine months.
The second meeting of creditors will be held virtually via Microsoft Teams on Friday 04 September.
More details in today’s issue of Travel Daily.