Virgin Australia's administrators Deloitte have revealed the airline owes almost $7 billion to an array of creditors, including $1.88bn in 50 aircraft leases, with the lessors being asked to forego payment while Deloitte determines if the new Virgin will need to count those aircraft in its fleet.
This includes around half of its Boeing 737s, all six Airbus A330s and one of six Boeing 777-300ERs.
In a note to creditors, Deloitte reiterated its intention "to seek to recapitalise the business and sell it", having set a timetable for the new owner to be in place by the end of June.
Deloitte itself expects to be paid as much as $30 million to find that buyer for Virgin Australia, which has become the highest-profile airline to fall to the coronavirus.
The estimated remuneration for the voluntary administration, which took effect on Tuesday April 21, is $20 million to $30 million, with further costs in the event of a liquidation, according to a circular to Virgin Australia’s creditors posted on Deloitte’s website.
More than 10 parties, including private equity firms, have expressed an interest in taking over the airline, according to Vaughan Strawbridge, one of the four administrators.
Those prospective buyers have already begun examining financial information about the business, said people familiar with the matter, after signing non-disclosure agreements and starting due diligence in a so-called data room.
Additional material by David Flynn
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