Tim celebrates 15 years with RMO Law! Congratulations Tim! Tim is a Director and leads RMO's Family & De Facto Law Team. For EXPERT Advice Call RMO Law on 1800 652 969 or email email@example.com TODAY....
Virgin & Voluntary Administration: What Does This Mean?
With COVID-19 travel restrictions in place, many airlines are struggling.
News broke late yesterday that Virgin Australia has now been placed into voluntary administration, with $5 billion in debts.
What exactly does “voluntary administration” mean?
Voluntary administration is one form of dealing with business insolvency in Australia.
Insolvency occurs when a business cannot pay their debts by the due date.
Other methods include liquidation and receivership.
Section 1.5.12 of the Corporations Act 2001 describes voluntary administration as:
“2.1 Voluntary administration
If a company experiences financial problems, the directors may appoint an administrator to take over the operations of the company to see if the company’s creditors and the company can work out a solution to the company’s problems.
If the company’s creditors and the company cannot agree, the company may be wound up (see 12.3).”
The appointed administrators, Deloitte, believe Virgin will be back in the air again once the companies debts are reduced and new owners are located.
How We Can Help
Take advantage of Ryan Murdoch O’Regan’s expert insolvency lawyers.
We are experienced in providing advice of all kinds to company administrators, liquidators and receivers.
Our team of lawyers are experts in their field and go above-and-beyond to deliver the best result, each and every time. We are proud to provide 5 star customer service to our clients.
We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.
This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.