SIA doesn't impair Virgin Australia stake amid sales process

The Singapore Airlines management team and its auditors at KPMG have discussed "different possible scenarios" about the financial position and capital needs of Virgin Australia after Air New Zealand placed its 25.9% stake up for sale. Notably, both agreed there was no need for an impairment of Singapore's stake in Virgin even though it is trading below the value at which Singapore bought it based on the scenarios discussed. Singapore CEe Goh Choon Phong Friday told analysts his airline was watching the situation at Virgin "closely", according to Bloomberg. Singapore last month raised its stake in Virgin to 23.11% from 22.91% at a price of 46.72¢ a share, leading to analyst speculation it might buy the Air New Zealand stake and make a bid for the remainder of the Australian carrier. Singapore already agreed to participate in extending a $425m 12-month debt facility to Virgin while it undertakes a review of its balance sheet. The other major shareholders, Air New Zealand, Etihad Airways and Sir Richard Branson's Virgin Group are also lending funds in proportion to their shareholdings in the company.<br/>