Bain Capital has won the bid for Virgin Australia and is working with the airline’s administrators to close the sale, which is “subject to minimal conditions precedent”.
The final shortlist, announced on 2 June, comprised US private investment firm Bain and the Richard Branson-linked Cyrus Capital Partners, a New York-based investment advisory firm.
Administrator Deloitte says that it received binding proposals from both parties on 22 June, as well as several proposals from other interested parties this week. One of them, received on 24 June, was “from the representatives of an ad hoc group of bondholders of the Virgin Australia Group”.
Deloitte says: “Having considered those bids, the administrators are pleased to confirm they have now entered into a sale and implementation deed with Bain Capital which will result in the sale and recapitalisation of the businesses of [Virgin Australia Holdings] and its subsidiaries (VAH Group).
“The sale and implementation deed is subject to minimal conditions precedent such as regulatory approvals. Approval by the Australian Treasurer pursuant to the Australian Foreign Investment Review laws has already been received by Bain Capital.”
Virgin Australia will also hold its second creditors’ meeting before the end of August.
Deloitte says: “The report to creditors will detail the estimated return to creditors and will provide further details with respect to the steps to be taken to complete the sale of the VAH Group.”