Deloitte will hold the first meeting of Virgin Australia’s creditors on April 30 as a buyer is sought from 10 parties for the debt-laden carrier which entered voluntary administration last week.
The purpose of the meeting is to provide creditors with information on the process and confirm if they want to form a committee.
The administrators will seek an extension of the standard 25 days from the first meeting to report their findings.
Deloitte has retained Houlihan Lokey to advise them on restructuring and finding a new buyer as soon as possible. It is estimated that Virgin owes nearly $7 billion (US$4.5 billion) to more than 12,000 creditors.
More than 10 parties are reported to have expressed interest in the airline, including Melbourne-based BHG Capital and U.S. private equity firms Apollo Global Management and Oaktree Capital Management.
Unions and the Labor Party have pressured the government to buy a stake in the airline to prop it up in order to protect the jobs of its 10,000 employees.
The Australian Services Union wrote on Twitter to assure its Virgin members on April 30: “This is a critical step in the administration process and the ASU will be there with a seat at the table to get the best outcome for our members.”
The airline is 90 percent foreign-owned by Singapore Airlines, Etihad Airways, and Chinese state-owned conglomerates HNA Group and Hanshan, while Richard Branson’s Virgin Group owns 10 percent.