US private equity firm Bain Capital is offering $3.5 billion for Virgin Australia, with the return to the airline's unsecured creditors estimated between 9 cents and 13 cents on the dollar.
US private equity firm Bain Capital is offering $3.5 billion for Virgin Australia, with the return to the airline's unsecured creditors estimated between 9 and 13 cents on the dollar., the bulk of which are its 9,000 employees, but which also include bondholders and aircraft lessors.
Bain's offer includes the payment of all $450 million in worker entitlements and all $2.3 billion of debt Virgin owes to secured creditors. But a report to creditors from Virgin's administrator Deloitte estimated the return to unsecured bondholders would be between $462 million and $612 million. There will be no return to Virgin's major shareholders which include Singapore Airlines, Etihad Airways, China's Nanshan Group and HNA and Sir Richard Branson's Virgin Group.Creditors will vote on the sale at a meeting on September 4.Like its rival Qantas, Virgin has instituted mass redundancies as a result of international airline travel halting due to the coronavirus pandemic and a dramatic reduction in domestic flying.
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