Aviation

Virgin’s administrators still yet to name final two suitors following surprise bid

The administrators of Virgin Australia are still mulling over which two bidders will go through to the third and final stage, after receiving a surprise offer late last week.

Deloitte had initially planned to whittle the four shortlisted bidders – Bain Capital, BGH Capital, Indigo Partners, and Cyrus Capital Partners – down to two yesterday.

However, Brookfield – which was originally in the bidding race for Virgin, but pulled out over concerns about the process – surprised the administrators by putting forward an eleventh-hour bid on Friday, according to media reports.

The Canadian asset management group is understood to have met with Deloitte yesterday, with administrators set to provide an update later this afternoon, before binding offers are due by 12 June.

According to The Sydney Morning Herald, the offers made by the remaining suitors are roughly $4.5 billion to $5 billion. The Australian reported that Bain Capital has firmed as one of the final two bidders.

The Australian also reported that Deloitte has managed to find funding sources both inside and outside Virgin that will extend its cash reserves for at least a month beyond 30 June, which is when the administrators hope to complete the sale of the airline.

It’s understood that Virgin’s lack of cash reserves has been a particular cause for concern among the bidders.

Deloitte had not replied to Travel Weekly’s request for confirmation on any of these developments.

However, a statement issued by lead administrator Vaughan Strawbridge on Friday noted that all of the remaining parties “have a genuine interest in the future of Virgin Australia, and see real value in the business, despite the uncertainty about when travel restrictions will be lifted”.

“Since we short-listed groups two weeks ago, we have gone through an intense program of management briefings and stakeholder meetings to position the bidders for the proposals received today,” he said.

“Just this week, for example, we will have held close to 100 meetings with bidders and stakeholder groups, including unions and governments.”

Strawbridge also noted there was some speculation out there around the dollar value bidders might be placing on Virgin.

“This is just speculation, and we won’t know what that value might be until binding offers are required in mid-June,” he said.


Featured image: iStock/Andrew Hanlon

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

Linkd Tourism appoints new trade account manager

Here’s some positive recruitment news to offset some of the negative redundancy news that’s been doing the rounds in the travel industry lately.

Share

CommentComments

Aviation

YIPPEE! Virgin launches new Aussie routes, brings back ‘Happy Hour’ sales

The only thing we at Travel Weekly love more than new routes is cheap airfares, and this story features both! Well, except wine, of course – we value wine above almost everything.

Share

CommentComments

Travel Agents

Flight Centre gains access to additional funding to offset COVID-19 impacts

Skroo’s stress ball has scored a well-earned break after Flight Centre managed to secure some much-needed funding.

Share

CommentComments

Hotels

Hotel Wrap: Event hotels to give away 1,200 nights, Crystalbrook offers $100 bar tabs to interstate guests + MORE

Planning a domestic escape for your clients? Lucky for you, we’ve got a mix of deals, offers and openings to suit all tastes in this wrap.

Share

CommentComments

Aviation

One airline set to be liquidated, while another files for bankruptcy protection

by Christian Fleetwood

Proving just how much the commercial aviation industry is struggling amid the COVID-19 pandemic comes the news of one airline on death row and another on its last legs.

Share

CommentComments

Cruise

Aurora Expeditions boss exits

by Huntley Mitchell

Did you recently send Robert Halfpenny an email but are yet to receive a reply? This might explain why.

Share

CommentComments

Road & Rail

Road & Rail Wrap: The Overland is back, road trips slowly return, Jayride market update + MORE

Time to make like Russell Coight and hit the road (and rail) because we’ve got your latest hit of industry updates from luggage cabins and back seats across the world.

Share

CommentComments

Destinations

European Union’s visitor ‘safe list’ includes Aussie travellers

While it’s a good sign that Australia made the EU’s ‘safe list’, it doesn’t exactly mean your clients can toddle off to France or Spain.

Share

CommentComments

Tourism

Travel blogger urges influencers to pay for holidays

‘Mrs. O Around the World’ has launched the #PayingOurWay movement to encourage content creators to support the travel industry.

Share

CommentComments

Aviation

Qantas launches new NSW routes, opens share purchase plan

Admittedly, both routes were originally scheduled to start earlier this year, so they’re not exactly a surprise. But don’t let that stop you from getting out the party hats and poppers.

Share

CommentComments

Wholesalers

TTC introduces ‘wellbeing directors’ for select trips

Are your clients worried about fellow travellers getting in their personal bubbles? The Travel Corporation has come up with a solution to put their minds at ease.

Share

CommentComments

Travel Agents

Concierge Travel Group rebrands following acquisition

Concierge Travel Group has a new name, and no, it’s not CTG or Travel Concierge Group.

Share

CommentComments