Virgin Australia bondholder launches court action to unveil secret Bain deal

One of Virgin Australia's largest bondholders has launched court action to unseal the secret details of a deal to sell the bankrupt airline to private equity firm Bain Capital as it steps up its efforts to take control of the company. Broad Peak Investment lodged an interlocutory process in the Federal Court on Tuesday seeking access to the sale agreement between Virgin's administrator Deloitte and Bain. Bain and Deloitte have refused to say how much the private equity firm will pay Virgin's creditors, which are owed a combined $6.8b, or how many of Virgin's 9000 workers will lose their jobs. Broad Peak, a Singaporean hedge fund, was part of a group of bondholders that proposed swapping their $2b in debts for ownership of Virgin. Deloitte passed over the proposal and a rival bid from Cyrus Capital in favour of Bain. Tuesday's court action comes after it was revealed on Monday that Broad Peak and Hong Kong-based bondholder Tor Investment Management have applied to the Takeovers Panel to intervene in the sale to Bain, arguing the way Deloitte ran the administration was "unacceptable" and blocked them from presenting their alternative deal to creditors at the second creditors' meeting in August.<br/>