Wednesday, 3 June 2020

Virgin Australia - final two bidders named.

Photo Brisbane Airport
According to the administrators of Virgin Australia, there are two groups in the final bidding process for the company. Deloitte said they had selected Bain Capital and Cyrus Capital Partners from five non-binding proposals it had received on Friday.  It was now seeking a binding agreement with the winning bidder by June 30.

Bain, owns Trans Maldivian Airways and is taking advice from the former head of Jetstar, the Qantas budget operation, Jayne Hrdlicka.

Whereas Cyrus has a history with Virgin and Richard Branson, they were heavily invested in Virgin America, before it had to be sold to Alaska Airlines to avoid bankruptcy.  It was also part of the group along with Branson's Virgin Atlantic that took over flybe and failed to put enough money in to the regional airline which then collapsed.

The next phase will include further engagement with stakeholders and aircraft financiers as they seek agreements on future terms before binding bids are received. Virgin owed nearly A$7 billion ($4.76 billion) to creditors when it entered voluntary administration in April.

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