No further exposure to Virgin Australia, says SIA Group

Singapore Airlines Group says its financial exposure to Virgin Australia is limited and it is not obliged to inject capital. “On the recent announcement of Virgin Australia entering into voluntary administration, the SIA Group has no requirement or obligation to provide capital to Virgin Australia,” it said Friday in a trading update. “We have been equity accounting for our share of losses in Virgin Australia. As at 31 December 2019, our carrying value was zero and we have no exposure to further losses incurred by the company. We have no outstanding loans to the airline.” Virgin Australia announced on 21 April that it was entering voluntary administration. Administrator Deloitte said on 30 April, after the first creditors meeting, that the airline expects to receive binding offers in June and is confident of achieving a sale by month-end. SIA Group’s latest FY 2019 report shows that the carrying amount of its investment in Virgin Australia was S$315m as at 31 March 2019. This encompassed a S$190m share of Virgin Australia’s net assets.<br/>