Buckle up

26 June 2020 By Jeffrey Goldfarb Follow @jgfarb

The U.S. buyout shop beat out rival bids for bankrupt Virgin Australia. There’s haggling to do with creditors and others before the sums are known. At the same time, Qantas is raising $940 mln and plans to axe 20% of its workforce in a fresh sign of the brutal challenges ahead.

This content is for Subscribers only

Context News

Buyout firm Bain Capital said on June 26 it has agreed with the administrator of Virgin Australia to buy the airline for an undisclosed sum.

The offer was chosen over a competing one from hedge fund Cyrus Capital and a debt-for-equity swap proposed by a group of bondholders.

Existing Virgin Australia shareholders are expected to be wiped out, administrator Deloitte said, and that it is too soon to tell the amount that creditors will recover. A deal is expected to be completed before the end of August, following a meeting with creditors. Bain said it would work with all stakeholders, including employees, bondholders and regulators.

The carrier entered voluntary administration on April 20.

Email a friend

Please complete the form below.

Required fields *