Avation Says Virgin Australia Claims Worth $73.3 Million -- Update

By Anthony O. Goriainoff

Avation PLC said Thursday that its claims against Virgin Australia relating mostly to outstanding rent and lease end return maintenance compensation have been calculated at around 101.4 million Australian dollars ($73.3 million) by the administrators' creditors trust.

The London-listed commercial-aircraft leasing company added that it expects to get a "proportional distribution" from the proceeds in due course, although no information about timing or the final amount has been given. Virgin Australia went into administration on April 21, 2020.

Last September, Avation said Virgin Australia's administrators had guided for an expected return to unsecured creditors in the range of 9% to 13% of the amount owed.

Avation had 13 aircraft leased to Virgin Australia when it went into administration and outstanding rent of $48.4 million. It said last September that the airline's total debt was $74.7 million.

Avation said at the time that unearned contracted revenue from Virgin Australia represented less than 6% of its total unearned contracted lease revenue across all customers at the date of the administration. This was mainly because the leases only had one to three years left.

Shares at 1055 GMT were flat at 89 pence.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

August 19, 2021 07:27 ET (11:27 GMT)

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