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?