Originally Posted by
Goat Whisperer
The bond holders are at the back of the queue, they took an unsecured position in exchange for a decent fixed return. Now they are finding why banks don't offer them 8%. They will cop a pasting. It may not be a 100% loss but it'll be close.
And yet those same bond holders are probably the same people that prevented Virgin from going into administration months earlier; well before some anomaly called Covid.
Without the millions they provided the company may well have been liquidated already but the eventual winning bid will gladly hold on to that cash.
A better outcome would be for the successful bidder to agree to a partial or full repayment of the capital at a pre-determined time in the future.