Virgin Australia enters trading halt for aid, restructuring talks amid coronavirus crisis

Virgin Australia has gone into a trading halt, following reports the airline is in the advanced stages of restructuring its $5 billion in debt.

The airline has asked the federal government for a $1.4 billion loan to ensure it survives the coronavirus crisis.

Virgin has asked for a $1.4 billion loan to help it survive the coronavirus crisis.Credit:Bloomberg

"Virgin Australia has requested a trading halt as it continues to consider ongoing issues with respect to financial assistance and restructuring alternatives," the company said in a statement.

"This has arisen due to the unprecedented COVID-19 crisis which has particularly impacted the aviation sector."

Virgin's shares are tightly controlled by a group of foreign airlines including Singapore Airlines Ltd, Etihad Airways and Chinese conglomerate HNA Group that have also seen a sharp deterioration in revenue due to the coronavirus pandemic.

Virgin last week grounded all domestic flights, except a single daily Sydney-Melbourne service through June 15.

The airline had already cut all international flights except government rescue charters, put most of its workforce on leave and permanently cut all pilots at low-cost arm Tigerair Australia and all crew based in New Zealand.

More to come

with Reuters

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