Avation PLC (LSE:AVAP) is to receive some money from the administrators of collapsed airline Virgin Australia (ASX:VAH) but does not yet know how much or when.
The commercial passenger aircraft leasing company has been advised by the Creditors Trust that its claims against Virgin Australia (ASX:VAH) and associated entities have been adjudicated by the Trustee and admitted for the combined sum of A$101.4mln.
Avation expects to receive a proportional distribution from the proceeds of the Creditors Trust in due course; however, no update has been given as to the timing of such distribution nor the relevant proportion of claims to be distributed to creditors, Avation told shareholders.
The majority of the company's claim against Virgin Australia is made up of outstanding rent and lease end return maintenance compensation. At the date Virgin Australia entered administration, its future outstanding rent totalled US$48.4mln. As a result of leasing some of the aircraft originally leased to Virgin Australia and selling some others, Avation’s claim against Virgin Australia was put at about US$56mln back in February, with the administrators indicating that the payout would be somewhere between 9.5 cents and 13 cents on the dollar for unsecured claims.