PPRuNe Forums - View Single Post - Private equity take-over for Virgin Australia?
Old 20th Apr 2020, 22:46
  #52 (permalink)  
Sunfish
 
Join Date: Aug 2004
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The trick would perhaps need to be renegotiated lease contracts. I don’t know what Virgin is paying, but funding today is supposed to be cheap - almost zero rates. Fuel is now SFA as well. A voluntary administration may make it possible to break and renegotiate those leases and tap in to cheap money.

The person - legal/financial who could successfully run such a deal is not common and would expect to walk away personally with at least $100 million if they pull it off. This would only work if ALL lessors were convinced to buy into exactly the same deal on the understanding that no better deal is forthcoming and that the alternative is repossessing the jets or a fire sale.

...However given Boeing’s screw up with the Max, there may be a ready market for Virgins aircraft.

These are very stressful times, I hope you all come out of this smiling.

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