Originally Posted by
Boeingpilot738
If the administrator had the cash to run a skeleton operation (But not ramp up) until the approval of any deal, why didn’t Bain just wait until then to inject the cash. Is it simply about being able to ramp up and protect their possible investment for down the track and $600 million is just the cost of doing that?
You've essentially answered your own question. Back at the start of the month the administrator filed an affidavit that included the following statement:
I presided at a meeting of the Committee of Inspection held on 1 July 2020 at 11am. At the meeting, I informed the Committee of Inspection that the Administrators had caused the Virgin Companies to enter into a facility to fund the ongoing administration and had granted security to support that borrowing.
In other words, the administrator had to borrow money to sustain the ongoing operations of the business. It's an undisclosed sum but rumoured to have been $500 - $600 million. Deloitte had guaranteed that loan.
A cash injection to cover the loan amount was almost certainly a requirement for a compliant proposal. That's the Bain cash injection.