Virgin Australia Collapses After Bailout Plea is Denied

Source: Facebook, Virgin Australia

On Tuesday, Virgin Australia collapsed after failing to receive a government bailout to cover debts.

The aviation company asked the Australian government for a $1.4 billion loan to reduce their $5 billion debt, however, their plea was rejected.

Insolvency experts from accounting firm Deloitte will now be in charge of Virgin Australia’s administration. These experts will manage the business structure and finances in order to bring it out of its current financial position.

According to CEO of Virgin Australia, Paul Scurrah, flights will still take place during administration and flight credits are safe.