Virgin Australia stock suspended as restructuring talks extend

[SYDNEY] Virgin Australia Holdings stock was suspended in Sydney as discussions over a potential financial restructuring for the airline continue.

The shares, already halted from trading, will be suspended for as long as seven days so talks centred on financial help and alternative structures can go on, Virgin Australia said in a statement on Thursday.

"These discussions have continued over the last two days, including discussions which remain confidential and are incomplete," Virgin Australia said in its statement. "The company is not presently in a position to make an announcement to the market with respect to these matters."

The airline, which has stopped virtually all services during the coronavirus outbreak, has been exploring options for securing capital for weeks. It has asked the government for a A$1.4 billion (S$1.23 billion) loan to weather the crisis.

Virgin Australia is almost entirely owned by foreign airlines. Singapore Airlines, Etihad Airways, HNA Group and Nanshan Group each own about 20 per cent. Australian Treasurer Josh Frydenberg said on Wednesday the airline's "first point of call" should be its shareholders.

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