Virgin Australia Holdings owes A$6.9 billion ($4.39 billion) to more than 10,000 creditors based on an initial review and will seek a three-month payment waiver from aircraft lessors, its administrator said on Friday.
Virgin Australia Group went into voluntary administration in late April as the global aviation industry came to a halt amid international border closures designed to slow the spread of coronavirus.
The newspaper said the airline's board of directors was meeting on Monday and an announcement of it going into administration was "imminent". Virgin Australia declined to comment on the report.
The airline was more than Aus$5 billion ($3.2 billion) in debt and had appealed for a Aus$1.4 billion loan to stay afloat, but the government refused to bail out the majority foreign-owned company.
Virgin Australia Holdings bondholders have withdrawn plans for a proposed recapitalisation of the airline that was meant to rival one from US private equity firm Bain Capital, a spokesman for the bondholders said on Friday.