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

Virgin Australia Bondholders Throw Hat in For Struggling Airline

Published 06/24/2020, 01:13 AM
Updated 06/24/2020, 01:17 AM
© Reuters.
VAH
-

By Gina Lee

Investing.com – Virgin Australia Holdings' (ASX:VAH) bondholders lodged a recapitalization proposal with the struggling airline’s administrator Deloitte on Wednesday morning.

The proposal comes two days after Bain Capital and Cyrus Capital Partners submitted final and binding offers. It could involve a debt-to-equity swap among the bondholders, who are owed around AU$2 billion ($1.386 billion), as well as an AU$ 1 billion capital injection.

The airline had taken a hard hit even before the COVID-19 virus wiped out travel demand, entering voluntary administration in April with an AU$7 billion debt burden to its creditors.

Deloitte aims to choose a preferred bidder for the airline by the end of the month.

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.