Bondholders back in for Virgin Australia after administrator selects rival Bain deal

Bondholders in Virgin Australia Holdings, in administration since April, on Monday submitted an updated proposal to take over the struggling company that rivals the approach from Bain Capital selected by administrator Deloitte. The new proposal from bondholders Broad Peak Investment Advisers and Tor Investment Management is “substantially the same” as a recapitalisation pitch for Australia’s second-biggest airline they lodged last month, a spokesman said. The spokesman said the bondholders were seeking to work cooperatively and constructively with Deloitte to receive access to stakeholders and information ahead of an Aug. 26 meeting at which a deal for the future running of the company is to be finalised. Deloitte told creditors on July 17 it had selected the Bain proposal for a deed of company arrangement because it provided certainty over a transaction being completed, immediate funding for the business and resulted in the best outcome for company creditors, including employees, as a whole. Virgin Australia entered voluntary administration in April owing A$7b to creditors, having been struggling financially even before the coronavirus pandemic slammed the travel and airline industries. <br/>