Bond holders launch last minute bid to save Virgin

As reported on Sky News, bond holders of Virgin Australia have sent a last minute proposal to administrators to scuttle the sale of the airline, instead wanting to recapitalise the company on the share market.

The proposal comes just days before administrator Deloitte is due to make a decision between two bidders – Bain Capital and Cyrus Capital.

Under this new proposal, bond holders would turn into share holders of the airline through an equity stake, resulting in around $1 billion of new funds for Virgin Australia.

The company would also be relisted on the ASX with reports suggesting the new market value would be about $1.4 billion.

This looks like shutting the gate long after the horse has bolted. I very much doubt Deloitte would give this proposal serious consideration.

How do you save a Virgin that’s already screwed?

Leith van Onselen

Comments

  1. This seems like the type of tripe that Morgan’s would create after they convinced a bunch of oldies to invest in the retail bonds and realised they can make even more fees out of the patsies. Unsecured bond holders can make all the noise they like they won’t get much if any cents in the dollar in the end.

  2. DominicMEMBER

    Wot? Bondholders don’t want to take a hit to capital? Stupid cee-*nts.

    This is what bankruptcy looks like, you dingbats. I know somebody advising on this situation. He’s not the sharpest tool in the box either.

    Unbelievable, the people making money out of these situations.