Virgin investors wiped out in Bain deal

Virgin Australia’s bondholders fear they will recoup as little as 6.5c in the dollar, or just $130 million out of the $2 billion they are owed, under the collapsed airline’s sale to American private equity firm Bain Capital.

The stricken carrier’s administrator, Deloitte, confirmed on Tuesday that Virgin’s shareholders – which include global aviation giants Singapore Airlines and Etihad Airways – will not see a cent returned to them under the deal signed on Friday with Bain.

Major bondholders now estimate they could receive between 6.5c and 10c back for every dollar they are owed, according to a source close to the group. The bondholders based that estimate on a view that Bain’s offer to all creditors – which include bondholders, staff owed entitlements, aircraft lessors and ticket holders – will total around.. [Read more]

Source: The Sydney Morning Hearld

Share this page