Reuters reports that Virgin Australia Holdings Ltd’s administrator has given final bidders Bain Capital and Cyrus Capital Partners until June 22 to lodge binding offers, an extension of 10 days from the original date, a person with knowledge of the matter said on June 3.
The additional time will allow the bidders to refine their final offers, the source told Reuters on condition of anonymity, adding that the administrator, Deloitte, was still seeking a binding deal with the winner by June 30.
Reuters relates that the next phase for the parties on the final shortlist will include further engagement with stakeholders and aircraft financiers as they seek pacts on future terms before binding bids are received, Deloitte has said.
About Virgin Australia
Brisbane, Queensland-based Virgin Australia is Australia’s second-largest airline. It commenced services in 2000 as Virgin Blue, wholly owned by the Virgin Group.
As reported in the Troubled Company Reporter-Asia Pacific on April 22, 2020, Bloomberg News related that Virgin Australia Holdings Ltd. became Asia’s first airline to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income. Administrators at Deloitte, who have taken control of the Brisbane-based carrier, aim to restructure the business and find new owners within months. More than 10 parties have expressed an interest, Deloitte related on April 21.
Virgin Australia, which has furloughed 80% of its 10,000 workers, will continue to operate some flights for essential workers, freight and the repatriation of Australians, Bloomberg said. The airline’s frequent flyer program is a separate company and is not in administration.
Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri of Deloitte were appointed as administrators of Virgin Australia, et al., on April 20, 2020.
The company owes AUD6.8 billion to lenders, bondholders, aircraft lessors, trade creditors and employees.
On April 29, 2020, the company and certain affiliates filed petitions pursuant to Chapter 15 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.