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Australia's number two airline had already appointed Deloitte to looking at potential restructuring options and the accounting firm is expected to run the administration process, including trying to find new owners to keep it flying.
The pandemic has thrown Virgin Australia into financial strife. CREDITARREN ENGLAND - AAP
Virgin's board of directors were meeting on Monday. One well-placed source said the announcement of it going into administration was "imminent".
Virgin employs around 10,000 people directly and supports another 6000 jobs indirectly.
The airline was saddled with around $5 billion in debt and was running out of money as the coronavirus pandemic forced it to almost completely shut down its business.
The company being reborn through a deed of company arrangement struck in administration is "the airline's only chance", said a source familiar with Virgin's struggles.
Virgin's future had hung in the balance ever since the pandemic took hold. It had asked the federal government for a $1.4 billion loan to see it through the crisis but was rebuffed.
Several private equity firms are already sniffing around Virgin looking to potentially buy the business out of administration, which will see some of its debts wiped and aircraft leases renegotiated.
This article first appeared on www.theage.com.au
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