https://www.afr.com/street-talk/dela...0200804-p55ibq
Deloitte's Vaughan Strawbridge and his team have had control of Virgin Australia and its sale since April. Louise Kennerley
Street Talk can reveal Deloitte asked Virgin's Creditors Committee of Inspection, the formal creditor representative group, to push the second creditors meeting back one week to September 4 and give it more time to prepare the pre-meeting reports.
According to a confidential document seen by this column, Deloitte argued the delay would also give creditors more time to consider information ahead of their vote on the administrator recommended recapitalisation proposal lobbed by Bain Capital.
It also said delaying the meeting now meant it was less likely creditors would vote to adjourn the meeting at a later date, to give them more time to work through the deal materials.
It is understood creditors accepted the delay - and were told to expect Deloitte's detailed report on August 25, ahead of the vote on September 4.
Deloitte said the delay would also allow more time to negotiate key contracts as part of the restructure, give bondholder groups more time to consider their options, and give the administrator more time to prepare the comprehensive and complex report.
It comes as Bain - with the help of its
advisers including KordaMentha, Goldman Sachs and Herbert Smith Freehills - prepare the proposed Deed of Company Arrangement, which is the formal legal document that would be put to Virgin creditors for their approval. The DOCA was due to be finalised in the coming week.
While Bain works through the paperwork, it would be keeping one eye on COVID-19 numbers and associated restrictions, which have curbed domestic and offshore travel and grounded most of Virgin's fleet. The sooner the travel market re-opens, the more likely Virgin could prove a shrewd investment for Bain.