Virgin in the Atlantic vs the Pacific: Australia’s equivalent of the UK’s new restructuring plan?
The UK’s Virgin Atlantic and Australia’s Virgin Australia are both going through restructuring processes due to COVID-19 related financial difficulties.
In the UK, Virgin Atlantic recently announced that it has launched the first restructuring plan under the new Part 26A of the Companies Act 2006. In contrast, in Australia, voluntary administrators have been appointed to Virgin Australia and are in the process of effecting a sales process through a deed of company arrangement.
TMA Victorian Committee member, Alinta Kemeny from Ashurst considers whether in Australia, we already have equivalent processes to the key mechanisms provided by the UK’s new restructuring plan, and if the availability of such mechanisms would make a fundamental change to the Australian restructuring toolkit including in the context of Virgin Australia.