Virgin Australia Gets $127 Million Queensland Lifeline Offer

Virgin Australia Holdings Ltd. has been offered a A$200 million ($127 million) lifeline from the Queensland government less than 24 hours after Australia’s Deputy Prime Minister all but ruled out nationalizing the embattled carrier, Bloomberg News reported. The funding is conditional on the Federal government coordinating a response involving all states and territories. Under the proposal the company would remain headquartered in Queensland and would be required to restructure its debt, according to Queensland Minister for State Development Cameron Dick, who called on bondholders and other parties investing in Virgin to “to do their bit as well.” “We are calling on the prime minister and his colleagues to do the right thing by Queensland and to do the right thing by Australia to bring this plan together,” Dick told reporters outside Virgin’s Brisbane headquarters Saturday. Read more

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