Virgin Australia Bondholders in Talks With Hogan Lovells

International law firm Hogan Lovells is holding discussions with some bondholders of distressed airline carrier Virgin Australia, ahead of a first creditors meeting set for Thursday, Bloomberg News reported. Virgin Australia became Asia’s first airline to fall amid the coronavirus pandemic when it was placed under voluntary administration last week. With total debt of about A$6.84 billion ($4.4 billion) and more than 10,000 creditors, it’s one of Australia’s most high-profile debt restructurings. The carrier, whose shareholders include Richard Branson’s Virgin Group, Singapore Airlines Ltd. and HNA Group Co., was denied a bailout by the Australian government. Hogan Lovells is not formally engaged, but is having discussions with bondholders on their positions, according to Scott Harris, a Sydney-based partner at the firm. A spokesman for Virgin Australia directed all questions about the airline’s restructuring to administrator Deloitte. A representative for Deloitte said that bondholders are “a key creditor group” and all creditors have been advised of the Thursday meeting and are receiving updates. Read more

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