This year’s largest administration – the collapse of Virgin Australia – is almost over and now the cost of administrators can be revealed.
This year’s largest administration – the collapse of Virgin Australia – is almost over and now the cost of administrators can be revealed.

Deloitte scores huge payday for saving Virgin

Virgin Australia administrators Deloitte will pocket $26.8m for their work pulling the airline back from the brink of obliteration.

A four-month process to find a buyer for Australia's second-largest carrier is tipped to culminate with its sale to Bain Capital on September 4.

Deloitte, led by administrator Vaughan Strawbridge, is set to take home the multimillion-dollar cheque once Bain is handed the keys to the cockpit.

Clayton Utz and other legal costs will total $8.7m while Morgan Stanley and Houlihan Lokey will collect $16m in fees for their advisory work in the administration process.

The airline collapsed in April, owing $6.8bn to its creditors, who range from mum and dad bondholders to aircraft lessors to service providers.

This week Bain Capital reiterated its pledge customers would have their flight credits honoured in full.

Virgin is holding between $550m and $650m in customer credits.

Mr Strawbridge said Bain's plan would provide "certainty" for Virgin to continue as Australia's second airline, pay employee entitlements and cover customer credits.

The airline's 9022 employees are owed $128m in leave and redundancy entitlements.

There are about 1400 individual creditors owed an estimated $237.2m for goods and services provided to the group and 53 landlords, which are predominantly airport landlords.

Liabilities of $14.7m are owed to the Australian Taxation Office in GST, fringe benefits tax and payroll tax.

Virgin Australia's unsecured creditors are expected to receive between 13 and 9 cents per dollar of their investment.

Originally published as Deloitte scores huge payday for saving Virgin


PHOTO GALLERY: Fast and furious night at Kingaroy Speedway

Premium Content PHOTO GALLERY: Fast and furious night at Kingaroy Speedway

DRIVER’S from around Queensland flocked to Kingaroy Speedway over the weekend for...

VIDEO: JT’s message of resilience to the South Burnett

Premium Content VIDEO: JT’s message of resilience to the South Burnett

JOHNATHAN Thurston shares a heartwarming message for South Burnett residents hit...

The real powerhouses behind Qld politics

Premium Content The real powerhouses behind Qld politics

Queensland’s election campaign is not all posing and promises,