Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Bain Capital confirms second-round bid for Virgin Australia

Published 05/24/2020, 01:08 AM
Updated 05/24/2020, 01:10 AM
© Reuters. FILE PHOTO: Aircraft from Australia's second largest airline, Virgin Australia, sit on the tarmac at the domestic terminal of Sydney Airport
VAH
-

SYDNEY (Reuters) - Bain Capital on Sunday said it was preparing a second-round proposal to buy Virgin Australia Holdings Ltd (AX:VAH), as the private equity group positioned itself as the "strongest" suitor to turn around the bankrupt airline.

Bain said in a statement it was "preparing a second-round proposal to become the owner and operator of Virgin Australia ... with a long-term mindset and commitment to a well-funded, successful airline".

The private equity firm is one of four parties shortlisted by administrators to buy Virgin Australia, Reuters has reported, citing people with knowledge of the matter. The others are Indigo Partners, BGH Capital and Cyrus Capital Partners.

Binding offers for Australia's second-biggest airline will be required from a smaller set of short-listed candidates by June 12, with a sale expected by the end of that month, the Deloitte administrators have said.

The company entered voluntary administration last month owing nearly A$7 billion ($4.6 billion), making it the biggest Asia-Pacific casualty of the coronavirus crisis hitting the global aviation industry.

"We know aviation isn't going to return to normal any time soon, but Bain Capital is here for the long haul with deep funding to navigate these difficult times," said Bain Capital Sydney-based managing director Mike Murphy.

"We have the strongest capital base of any of the bidders."

Bain, which owns Trans Maldivian Airways, did not specify the value of its bid, but said it was "supported" by Jayne Hrdlicka, the former head of Qantas budget airline Jetstar.

Virgin owes A$2.3 billion in secured debt to banks and aircraft financiers, A$2 billion to unsecured bondholders, A$1.9 billion to aircraft lessors, and A$450 million to employees.

"We want to bring back the best parts of the Virgin Blue culture and make flying fun again," Murphy said, referencing Virgin's first brand name when it opened in the early 2000's.

© Reuters. FILE PHOTO: Aircraft from Australia's second largest airline, Virgin Australia, sit on the tarmac at the domestic terminal of Sydney Airport

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.