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what is Voluntary Administration

ATC AlaskaGuy

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Does anyone know what the term Voluntary Administration means for a airline, the reason I am asking is that i noticed that Virgin Australia has this term listed with them, I was thinking that this must mean like bankruptcy but not really sure if that is what this means so was really hoping that someone knows what this means.

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32 minutes ago, ATC AlaskaGuy said:

so basically it is a way of doing what needs to happen before thy have to file for bankruptcy

It is basically like the US. Chapter 11 system but certainly not the same. In Australia a company who is losing money and can not support its creditors can call in administrators before they totaly fail. The administrators attempt to either reserect the company or find a new buyer/investor. In Virgin Australia's case it was having difficulty keeping the airline afloat due to various reasons which I can't go into here. The covid19 grounding was the nail in the coffin for VA at this stage.

Please be aware that this is a very rough description and my understanding as a non legal person, but I  hope it might explain things a little.


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