BOOM! Virgin’s bondholders crash the bidding party with $3 billion proposal

BOOM! Virgin’s bondholders crash the bidding party with $3 billion proposal

You could sense that something was brewing amongst Virgin Australia’s bondholders, and now it’s been confirmed that they are making a late play for the airline.

While the two remaining bidders – Bain Capital and Cyrus Capital Partners – locked in their offers on Tuesday afternoon, Virgin’s administrators woke to an alternative proposal being lobbed at them early Wednesday morning.

The $3 billion package consists of the bondholders injecting $800 million of new capital into the struggling carrier, as well as providing $125 million worth of interim funding, and having their $2 billion in debt converted into equity in a reborn Virgin Australia.

A spokesperson for the airline’s bondholders – which include thousands of retail investors – confirmed to Travel Weekly that the “comprehensive recapitalisation proposal” had been submitted to the administrators by Faraday Associates.

“Our plan offers a sustainable capital structure underpinned by public ownership to provide certainty and support the strong operating plan for the airline,” the spokesperson said.

“This approach offers the fastest pathway to return Virgin to the new operating environment for Australian aviation and positions the airline to resume high-quality services to its millions of loyal Australian customers.”

With the administrators from Deloitte hoping to put forward their preferred bidder to creditors by Tuesday, this last-ditch effort from Virgin’s bondholders certainly makes for an interesting next few days. Whether we get a decision by then is anyone’s guess.

Deloitte declined to comment when contacted by Travel Weekly.

Which way do you think Virgin’s administrators will go? Join Travel Weekly’s Travel Trade Life Raft Facebook group and vote now in our poll.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]