Latest. I take this to be a last minute attempt to block Bain. My gut feel is that Bain will have proved to have completely overpowered and outmaneuvered Deloittes, the Unions, major creditors and the Federal Government. When the full extent is known, most people will want to vomit.
I would expect Bain is now “feeling up” major creditors to get them onside. That involves a combination of stick and carrot, but mainly stick. Contrary to popular opinion, creditors managers couldn’t give a rats about. losing other people’s money, they are much more concerned that they won’t get blamed. Bain will exploit that fear to get them lined up behind its DOCA. I give Temasek and Tor no chance.
Virgin Australia bondholders trying to derail the bankrupt airline's sale to Bain Capital are pushing administrators Deloitte to let them meet Virgin's management, unions and other creditors to help finalise their rival relaunch proposal.
Singaporean hedge fund Broad Peak and Hong Kong investor Tor on Monday sent Deloitte a draft Deed of Company Arrangement (DOCA) that would see them and other bondholders owed a combined $2 billion take control of Virgin, a spokesman for the bondholders said..........
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Broad Peak and Tor, which are owed $300 million, and others bondholders fear they will receive less than 10¢ in the dollar under the Bain deal, and propose swapping their debt for equity while pouring $800 million in fresh cash into Virgin to recapitalise the business.
"We have the funds and the ability to implement this proposal and firmly believe that our proposal represents the best option for Virgin Australia, its employees, creditors, stakeholders and the Australian community," a spokesman for the bondholders said.
"Engagement with Virgin management, unions, lessors and other stakeholders is a priority for the bondholders, starting this week."
https://www.theage.com.au/business/c...20-p55dqk.html