Virgin Australia may have been trading while insolvent in the early days of the coronavirus pandemic’s impact on airline travel, according to a report by Virgin’s administrator Deloitte.
“Our preliminary analysis indicates the group was insolvent from 22 March 2020 and possibly as early as 18 March 2020,” Deloitte said in report to creditors ahead of a vote on Bain Capital’s proposed buyout of the airline.
Virgin Australia was not placed into voluntary administration until April 21, with debts of $6.8 billion.
Under corporations law, company directors have a duty to prevent a company from trading while insolvent.
If a director is found to have contravened the law, he or she may be ordered to pay an amount of compensation to the company eq…
Read the full article at: https://www.abc.net.au/news/2020-08-25/bain-capital-offer-3.5-billion-virgin-australia-creditors-vote/12592742
