Virgin Australia Holdings Ltd

Grounded in Oz: Airliner Virgin Australia Holdings Ltd entered into voluntary administration and later Chapter 11 bankruptcy, as the company succumbed to an overwhelming debt load.

The company thus has become Asia’s first airline to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income. Still, it was not without extreme bankruptcy risk even before the pandemic hit. Observe the FRISK® score's reading of Virgin Australia:

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Virgin Australia Holdings Ltd. FRISK® Score

The FRISK® score, which blends stock market volatility data, bond agency ratings, financial ratios and crowdsourced click patterns from CreditRiskMonitor subscribers, has proven to be 96% accurate in predicting public company bankruptcy within a 12-month time horizon. Thus, our subscribers with Virgin Australia in their portfolios would have been tipped off well in advance - for more than a year - that the company was at heightened risk of failure and would have had the opportunity to adjust their exposure level accordingly.

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About Bankruptcy Case Studies

CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.