Aviation

“Unacceptable”: Virgin Australia bondholders attempt to spoil Bain’s takeover deal

Huntley Mitchell

Huntley Mitchell

There could still be one final twist in the sale of Virgin Australia, with some of the airline’s bondholders challenging the deal.

The federal government’s Takeovers Panel revealed yesterday that it had received an application from Broad Peak Investment Advisers and Tor Investment Management in relation to sale of Virgin.

Both groups, who are key bondholders for the airline, are claiming that “certain circumstances regarding the process conducted by the administrators are unacceptable” and are preventing them from presenting an alternative offer at the much-anticipated creditors’ meeting next month.

“The applicants seek interim orders regarding access to information including to the terms of the Bain proposed transaction,” a statement by the Takeovers Panel read.

“The applicants seek final orders, including orders to enable the applicants to make an alternative proposal.”

The Takeovers Panel noted that a sitting panel has not been appointed at this stage and no decision has been made whether to conduct proceedings.

“The panel makes no comment on the merits of the application,” it said.

In response to the application, a spokesperson for Virgin Australia’s administrators told Travel Weekly: “The administrators have undertaken a process which has resulted in a sale to Bain Capital, and which provides certainty for the future of the airline and delivers the best outcome for all creditor groups that could be achieved in the circumstances.

“Further details of the sale will be made available in the administrators’ report to creditors before the next meeting of creditors, currently expected to be held by the end of August 2020.”

This isn’t the first time that Virgin bondholders have attempted to make a play for the airline, having lobbed a last-minute offer right before the administrators at Deloitte decided to go with Bain Capital.


Featured image source: iStock/Ryan Fletcher

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