The local council expects to get about 10 per cent of what it is owed from accrued airport fees, but the vast majority of the debt is likely to be written off.
abc.net.au/news/virgin-half-million-dollar-debt-karratha-council/101921270Karratha ratepayers could remain half a million dollars out of pocket as Virgin Australia is unable to pay a longstanding debt.The council hopes to be paid about 10 per cent of the total debt
The airline owes the City of Karratha $525,321.38 and mayor Peter Long said the council was unlikely to get a full repayment.in April 2020 during the first wave of COVID-19 when travel restrictions grounded most planes.The City of Karratha operates the local airport and the debt was related to charges such as landing fees that went unpaid as the airline hit financial hardship, according to Mr Long.
"We've got roughly $100 million sitting in the bank anyway. That half a million dollars is significant, but it's not a major impact on us."Virgin Australia declined to comment and referred questions to Deloitte, which managed the voluntary administration process. "In this case, the administrators had to assess several thousand proofs of debt to ensure the right creditors would be paid the right amounts," they said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Investment banks close in on Virgin IPO mandateVirgin’s IPO could swell north of $1 billion, giving international banks a chance to utilise their cross-border desks to find investors.
Read more »
Why a Virgin IPO would be good for QantasPerpetual’s James Rutledge on EVT’s capacity to surprise this reporting season, Newcrest’s underappreciated copper exposure, and why Medibank looks cheap.
Read more »
Virgin directors to navigate super fund conflicts ahead of IPOThe appointment of Peter Warne and Pippa Downes to the Virgin board presents thorny conflict of interest issues at AusSuper and UniSuper.
Read more »
Australia slaps fresh sanctions on Myanmar, IranTop military figures are targeted as the Albanese government unleashes travel bans and asset freezes on the Myanmar junta and Iran’s hardline regime.
Read more »
Bonza 'very encouraged' by response from travellersThe CEO of new Australian airline Bonza has said the carrier is 'very encouraged' by the response from travellers with an 'astonishing' number of seats sold and 'many happy customers' on launch day.
Read more »