A trust issue: Is the financial distress caused by COVID-19 putting beneficiaries' interests at risk?

THE VIRGIN AUSTRALIA FLEET SITS IDLE AT AIRPORTS.

When Virgin Australia Holdings Ltd went into voluntary administration towards the end of April a casualty of the COVID-19 pandemic members of Virgin Australias Velocity Frequent Flyer program may have thought that their points were safe.

Velocity Frequent Flyer Pty Ltd (VFF) is a distinct company from Virgin Australia Holdings and had avoided administration.

Furthermore, VFF had also set up a trust the Loyalty Trust under which Velocity Rewards Pty Ltd holds money as trustee for VFF to secure the value of any loyalty points issued.

But it has now emerged that Velocity Rewards Pty Ltd had loaned $150 million to Virgin Australia Holdings in 2014 and that loan hasnt been repaid.

The…

Read the full article at: https://www.smartcompany.com.au/coronavirus/trusts-beneficiary-interests-risk-covid-19/

A trust issue: Is the financial distress caused by COVID-19 putting beneficiaries’ interests at risk? – SmartCompany.com.au

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