Bain Capital plans second-round bid for Virgin Australia

Bain Capital is preparing a second-round proposal to become the owner and operator of Virgin Australia Holdings, the US alternative asset manager said Sunday. Its Sydney-based managing director Mike Murphy is leading the team bidding for Virgin Australia, which entered voluntary administration last month. Bain Capital is being advised by KordaMentha and is supported by Jayne Hrdlicka, the former CEO of Jetstar. “We have the strongest capital base of any of the bidders,” Murphy said. “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.” Bain is among four shortlisted bidders vying for Virgin Australia, which collapsed in April overwhelmed by about A$6.5b in debt. The carrier’s problems were amplified by years of losses and a severe revenue shortfall from coronavirus-linked travel cancellations. US private equity firm Indigo Partners has said it would like a local partner for its bid. The other two shortlisted bidders are reportedly BGH Capital and Cyrus Capital Partners. Brookfield Asset Management Inc. is in discussions with administrators Deloitte over rejoining the bidding for the airline after withdrawing from consideration.<br/>