Virgin Australia collapse: creditors meet amid speculation of steep losses for investors

Creditors of grounded airline Virgin Australia are to meet Thursday as speculation mounts that investors who poured almost $2b into high-risk debt issued by the company face steep losses. Estimates of how much the investors, who range from the Anglican church to giant US fund managers, are likely to receive if administrators Deloitte successfully sell Virgin Australia vary from as little as 7c in the dollar to as much as 65c in the dollar. Creditors of the airline are to meet via videolink at 11am. The meeting could have seen a challenge from employees to the role of partners at Deloitte as administrators, but this now appears unlikely after unions threw their support behind the accounting firm. Deloitte said no offer to buy the airline would be put before creditors. Administrator Vaughan Strawbridge has previously said that more than 10 parties are interested in tipping money in to get Virgin Australia recapitalised. Potential buyers are reported to include BGH Capital, a private equity firm run by Ben Gray and backed by Singapore sovereign fund Temasek, WA conglomerate Wesfarmers and US airline investor Indigo Partners. Last week Strawbridge told the federal court Virgin Australia had about 12,000 creditors, including banks, aircraft financiers, landlords and its 9,000 employees.<br/>