DEBTOR AND CREDITOR – AUSTRALIA

Canberra lays out terms for support of Rex Airlines rescue

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Original article by Chris Zappone
The Sydney Morning Herald – Page: Online : 5-Nov-25

The federal government will provide Rex Airlines with a new $60m commercial loan, lifting taxpayers’ total financial support for the carrier to more than $200m since it went into administration. US-based Air T will in turn contribute $50m to the recapitalisation of Rex as part of its deal to acquire the failed airline. The government will also restructure about $90m of Rex’s debt on terms that will allow repayments to be made over time via a profit-sharing arrangement. In addition, the government will retain its security over Rex’s fleet of Saab 340s aircraft and its flight simulator. Meanwhile, administrator EY has confirmed that Rex’s creditors will not recover any of their money.

CORPORATES
REX AIRLINES PTY LTD, REGIONAL EXPRESS HOLDINGS LIMITED, AIR T INCORPORATED, ERNST AND YOUNG

Big tax debts forcing closures

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Original article by Cameron Micallef
The Australian – Page: 15 : 14-Jan-25

Data from CreditorWatch shows that 5,097 businesses owed more than $100,000 to the Australian Taxation Office in 2024; some 1,715 of these businesses were declared insolvent or ceased trading. In addition, the owners of more than 2,430 firms opted for restructuring rather than liquidation. The ATO advised in November than it intends to ‘aggressively’ pursue outstanding small business tax debts, which totalled $34bn at the end of 2024. CreditorWatch CEO Patrick Coghlan has defended the ATO’s stance, arguing that it is simply trying to collect the tax that all companies are obliged to pay.

CORPORATES
CREDITOR WATCH PTY LTD, AUSTRALIAN TAXATION OFFICE

Big tax debts forcing closures

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Original article by Cameron Micallef
The Australian – Page: 15 : 14-Jan-25

Data from CreditorWatch shows that 5,097 businesses owed more than $100,000 to the Australian Taxation Office in 2024; some 1,715 of these businesses were declared insolvent or ceased trading. In addition, the owners of more than 2,430 firms opted for restructuring rather than liquidation. The ATO advised in November than it intends to ‘aggressively’ pursue outstanding small business tax debts, which totalled $34bn at the end of 2024. CreditorWatch CEO Patrick Coghlan has defended the ATO’s stance, arguing that it is simply trying to collect the tax that all companies are obliged to pay.

CORPORATES
CREDITOR WATCH PTY LTD, AUSTRALIAN TAXATION OFFICE

Bonza joins the scrapheap of airline failures

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Original article by Robyn Ironside
The Australian – Page: 15 : 3-Jul-24

Creditors of failed budget airline Bonza have voted 35-6 in favour of liquidating the carrier. Administrator Hall Chadwick has advised that they had received no offers for Bonza or its assets, despite an extensive sales campaign. The formal vote to liquidate the company will allow Bonza’s employees to access the federal government’s fair entitlements guarantee scheme. Unions note that the decision to liquidate will provide Bonza’s employees with much-needed certainty, given that they have not been paid since March.

CORPORATES
BONZA AVIATION PTY LTD, HALL CHADWICK AUSTRALIA PTY LTD

Whitehaven won’t alter dividend policy despite setbacks

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 26-Oct-20

Whitehaven Coal’s lenders recently agreed to relax its debt covenants after the company sought relief due to a severe downturn in coal prices. However, a condition of that relaxation will constrain the company’s ability to pay dividends until its debt levels fall below certain thresholds. Whitehaven had paid out a record final dividend of $298 million in August 2019, and chairman Mark Vaile says he has no regrets about the payment. He says the company may need to be a bit more conservative about capital management in the future, while he notes that the 2019 payout followed two successive years of record profits.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC

Bondholders move to stop sale of Virgin

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 22 : 7-Jul-20

Deloitte will oppose an application for the Takeovers Panel to halt the sale of Virgin Australia to private equity firm Bain Capital. Virgin’s bondholders want its creditors to be given an opportunity to vote on their proposal to recapitalise the failed airline; this includes a debt-for-equity swap and relisting Virgin on the sharemarket. A spokesman for Deloitte says the administrators believe that the application to the Takeovers Panel is without merit and the sale to Bain is the best outcome for all creditors.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, BAIN CAPITAL LLC

Shareholders likely to miss out altogether from Virgin sale

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 16 : 1-Jul-20

Virgin Australia’s joint administrator Richard Hughes has advised that the failed airline’s creditors are unlikely to be repaid in full. He has also warned that Virgin’s shareholders are highly unlikely to receive any payout from its US-based private equity firm Bain Capital. Sources close to several of Virgin’s five major foreign shareholders have indicated that this outcome had been expected. Bain Capital will formally take control of Virgin on 1 July.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, BAIN CAPITAL LLC

Bond holder bid shakes Virgin

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Original article by Robyn Ironside, Damon Kitney
The Australian – Page: 13 & 17 : 25-Jun-20

Virgin Australia’s administrator Vaughan Strawbridge has been presented with a debt-for-equity proposal from about 5,500 of the failed airline’s bond holders. They would receive shares in Virgin and provide an $800m capital injection for the airline, which would remain a listed company if their proposal is accepted. The bond holders would have the option of immediately selling their shares and receiving about $0.70 for every dollar that they are owed. Bond holders contend that it is best outcome for Virgin and its employees. Strawbridge is slated to select the preferred private equity bidder within days.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED

Forrest among Virgin suitors as June sale set

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Original article by Robyn Ironside
The Australian – Page: 13 & 20 : 1-May-20

The first meeting of Virgin Australia’s creditors has been told that eight prospective buyers of the carrier have signed non-disclosure agreements with the administrators. A further 12 parties are still in negotiations with Deloitte, which is seeking indicative offers by mid-May with a view to finalising the sale of Virgin by 30 June. Meanwhile, a spokesman for Andrew Forrest’s Minderoo investment group has declined to comment on speculation that the iron ore magnate could buy Virgin. ACTU president Michele O’Neil has called for government support for Virgin.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, MINDEROO PTY LTD, ACTU

Explosive, gobsmacking statements by Tax Commissioner raise serious concerns about democracy, the rule of law and cover-up

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Original article by Ken Phillips
Self-Employed Australia – Page: Online : 28-Oct-19

Tax Commissioner Chris Jordan used an appearance before the Senate Economics Legislation Committee on 23 October to refute claims that the Australian Taxation Office can recover unpaid tax debts by taking money directly out of people’s bank accounts. The allegation was aired in advertisements funded by the ‘Right to Know’ campaign. Jordan says the ATO only takes action such as garnishee orders as a last resort, but there is documented evidence that the ATO emptied at least one person’s bank account and did not inform them of this until 10 days later. The ATO must be reigned in, but this is unlikely to happen until the federal government considers that the ATO is doing damage to it politically.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE