ATC AlaskaGuy Posted May 17, 2020 Report Share Posted May 17, 2020 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. Link to comment Share on other sites More sharing options...
Braf123456 Posted May 17, 2020 Report Share Posted May 17, 2020 Voluntary Administration is a process where an insolvent company is placed in the hands of an independent person who can assess all the options available, and generate the best outcome for a business owner and for creditors. Link to comment Share on other sites More sharing options...
ATC AlaskaGuy Posted May 17, 2020 Author Report Share Posted May 17, 2020 so basically it is a way of doing what needs to happen before thy have to file for bankruptcy Link to comment Share on other sites More sharing options...
707FAN Posted May 17, 2020 Report Share Posted May 17, 2020 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. Kev Link to comment Share on other sites More sharing options...
blacklabelbraai Posted May 17, 2020 Report Share Posted May 17, 2020 I suspect late night posting into the incorrect forum might be the reason for the OP :-) Link to comment Share on other sites More sharing options...
scoobflight Posted May 17, 2020 Report Share Posted May 17, 2020 4 hours ago, blacklabelbraai said: posting into the incorrect forum I would move this thread if the forum software allowed it ... Link to comment Share on other sites More sharing options...
ATC AlaskaGuy Posted May 17, 2020 Author Report Share Posted May 17, 2020 thanks Kev that explains it for me. Link to comment Share on other sites More sharing options...
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