Who would know, where this all ends up- hopefully, Monday shall provide some 'clarity/productive direction' to what 'seems' from the outset to have been less than a smooth/stable/open process......????
All the Media outlets are running a similar story to the one quoted ex Mr 'Ragnor'- above.
It maybe/maybe not worth, revisiting the events/& reporting of 10 July (over 30 days ago)- 'should' it be of interest:
Hearing of 10 July:
Interlocutory Hearing (mp4, 348 mb)
The SMH article of 10 July:
https://www.smh.com.au/business/comp...10-p55auo.html
Quote #1 (
Bolding and inserted
'on'):
Federal Court judge John Middleton dismissed the bondholders' request for the documents after putting the administrator ('on' Notice, that is S28- faks me) notice to share information with bondholders to avoid a legal battle. He left the door open for bondholders to return to court if they were concerned about how the process was being handled by Deloitte.
"The administrators may have to make some rather hard decisions about how much they do disclose information for the purposes of the second creditors' meeting. If they take a particular approach the second creditors' meeting may become litigious," Justice Middleton said.
"I'm just... warning is putting too fine a point on it I may say," he said.
He said it was in "everyone's interest" for as much communication as possible to flow between administrators and creditors as this would alleviate concerns and allow people to gather information to consider the options available.
Quote #2:
Mr Jackman told the court his client had been confused by a public statement by Deloitte that the sale of Virgin was a done deal, given it now claimed Bain will also be putting forward a DOCA at the meeting."We are confused as to how the administrator, no doubt with advice, has come to the conclusion that it is a fait accompli and whatever happens at the second creditors' meeting can't change the asset sale to Bain."
Bondholders welcomed Justice Middleton's comments during the hearing and said they looked forward to working with administrators and other Virgin stakeholders to present their recapitalisation plan.
The Bondholder (second) DOCA was confirmed/a given back then, also Middleton J did 'ventilate/postulate' the appointment of a Formal Facilitator, at that time (10 July).
And we now arrive, today with the all points media spiel for the weekend papers- prior Monday and the Fed Court.
The SMH article today (dated pm 14/07/20):
https://www.smh.com.au/business/comp...14-p55lta.html
Extract (
Bolding):
Virgin boss urges workers to ignore bondholder 'noise'
By
Patrick Hatch August 14, 2020 — 5.57pm
Virgin Australia's chief executive Paul Scurrah has warned his workforce that a gambit by bondholders to usurp Bain Capital and take control of the airline would cause disruption and delay the resurrection of the airline.
Hedge funds Broad Peak Investment Advisors and Tor Investments will have an application heard in the Federal Court on Monday to try and force Deloitte to put their rival proposal for Virgin to a vote of creditors on September 4
Virgin CEO Paul Scurrah and administrator Vaughan Strawbridge have dismissed the bondholders' chance of success.
The Singapore and Hong Kong investors, which have enlisted five former Virgin executives including
co-founder Rob Sherrard, want bondholders to swap their $2 billion in debts for shares in Virgin and contribute to a $800 million capitalisation.
Mr Scurrah on Friday told workers - who make up the biggest group of creditors by number - that he knew "noise" in the media about the bondholders was unsettling but reassured them Bain remained "100 per cent committed" to Virgin after agreeing to buy the airline in June.
"If for some reason an alternative proposal was allowed to be put to the meeting to be voted on, it would be very disruptive to the sale process and problematic for us," Mr Scurrah said in a note sent to staff seen by this masthead. "Any delay to the administration process would mean we remain in administration for a longer period."
"From day one, the goal has been, and remains, to bring this business out of administration as quickly as possible and avoid the potential outcomes of going into liquidation, which is not something any of us want."
Mr Scurrah said it was important staff knew that the bondholder proposal was "non-binding, conditional, indicative and incomplete".
Virgn's administrator Deloitte has, meanwhile, told members of Virgin's creditors' committee of inspection in a letter sent on Thursday that the sale deal signed with Bain on June 26 precluded it from considering or even discussing any other deal.
"This remains the position unless the asset sale to Bain Capital is set aside by the court," joint administrator Vaughan Strawbridge said in the letter, seen by this masthead. "Currently, neither [Broad Peak and Tor] or any other party, have brought an application to court seeking to set aside the asset sale to Bain Capital."
He said the vote of creditors early next month would only determine how Virgin was sold - either via the asset sale or a deed of company arrangement (DOCA) - and not who it was sold to."We do not see how a competing DOCA that deals with the assets of the business that are subject to the agreement with Bain Capital can be put to the creditors," Mr Strawbridge said.
A key reason Deloitte chose to enter an asset sale was to secure funding to keep Virgin out of liquidation, with Bain immediately taking over financial liability of the airline. Mr Strawbridge said Broad Peak and Tor had not shown any evidence of funding and that their proposal remained "highly conditional".
Virgin went into voluntary administration with debts of $6.8 billion in April after the COVID-19 pandemic forced it to ground most of its fleet.
All of the media input (quotes and comments) into these articles of recent times would seem to be (in my view...??), 'ignorant of/or ignoring' ???- what transpired back on the 10th of July.
e.g. extract from the above article:
"If for some reason an alternative proposal was allowed to be put to the meeting to be voted on, it would be very disruptive to the sale process and problematic for us," Mr Scurrah said......
Was NOT 'that' always going to happen/be the case, since the 10th of July????, or is this 'news' to the process?????
Anyway- see what Monday brings.
rgds/good W/E all
S28- BE