King & Wood Mallesons Acts for Virgin Creditors, Lessors
The information came to light through an affidavit filed with the Federal Court of Australia. The affidavit also revealed that Clifford Chance has been in discussions with lessors about representing them in the proceedings.
April 29, 2020 at 03:31 PM
3 minute read
King & Wood Mallesons is acting for 16 different creditors and lessors to Virgin Australia following the airline's move into voluntary administration.
KWM is acting for banks, including Bank of America, BNP Paribas, Bank of China and Standard Chartered Bank, as well as for aircraft leasing companies, including AerCap, Dubai Aerospace Enterprise, General Electric Capital Aviation Services and SMBC Aviation Capital (UK) Limited, according to an affidavit signed by Clayton Utz solicitor Kassandra Adams that was filed with the Federal Court of Australia.
Clayton Utz Sydney-based restructuring partner Tim Sackar is advising the administrator Deloitte. The firm had been advising management before the company entered administration.
The Virgin Australia board put the airline into voluntary administration—similar to the Chapter 11 bankruptcy protection in the U.S.—last week after the government refused financial assistance to the airline and major shareholders Singapore Airlines and Etihad Airways, Chinese conglomerates Nanshan Group and HNA Group declined to further support the carrier.
The affidavit, which largely dealt with procedural matters ahead of a creditors meeting on April 30, also reveals that Clifford Chance has been in discussions with lessors about representing them in the proceedings.
"We are in the process of speaking with a number of our firms operating lessor clients and we expect to receive various sets of instructions in the next few days," Hong Kong partner Scott Bache wrote in an email to Clayton Utz on April 21.
The documents do not indicate if the firm is now representing any lessors and the firm declined to confirm that it is representing any lessors.
Another document relating to the administration shows the extent of Virgin's debts: lenders under secured corporate debt and aircraft financing facilities are owed approximately A$2.3 billion ($1.5 billion); unsecured bondholders are owed A$2 billion ($1.3 billion); and aircraft lessors are owed A$2.8 billion ($1.8 billion). Landlords, employees and trade creditors are owed smaller sums.
Separately, Scott Harris, a Sydney-based partner at Hogan Lovells, told Bloomberg that the firm is having discussions with bondholders on their positions but is not formally engaged. Harris did not immediately respond to requests for comment.
Norton Rose Fulbright is acting for some of the airline's creditors and local firm Corrs Chambers Westgarth is acting for some of the airline's bondholders.
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