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20 buyers now circling Virgin Australia

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20 buyers now circling Virgin Australia

Old 18th Jun 2020, 23:22
  #281 (permalink)  
 
Join Date: Dec 2000
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The government wanted a market led solution, that is what it is going to get so anything they say now is worthless.
Having said that, it is the normal media thing now that passes for news. Unnamed sources have said, people close to the confidential process have said, the aviation expert Geoffrey Thomas says....
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Old 18th Jun 2020, 23:27
  #282 (permalink)  
 
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I don't know how the government can feign surprise from this process. Surely their conduit to the administration process, Nicholas Moore, must have been across the real intentions of the 2 VCs right from start and advised the minister for Rex of the likely outcomes early on. Not to be outdone, this cunning minister has a backstop though, with a very sharp lobbyist who will no doubt come up with a timely plan to gain significant additional funding for a transition into larger aircraft that will immediately fix the pesky virgin regional issue.

Problem solved.


Arctaurus is offline  
Old 19th Jun 2020, 00:09
  #283 (permalink)  
 
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Originally Posted by Arctaurus View Post
[T]he minister for Rex ... has a backstop though, with a very sharp lobbyist who will no doubt come up with a timely plan to gain significant additional funding for a transition into larger aircraft.
Such cynicism!
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Old 19th Jun 2020, 00:52
  #284 (permalink)  
 
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Originally Posted by Sunfish View Post
You have never seen pure evil until you have seen Venture Capitalists at work. I would care not what assurances are in the DOCA. What will be important is what is left OUT of the DOCA. Regional services, employment guarantees, it won’t matter. The Government is correct to be skeptical.

My lawyers used the analogy of a marriage; you start at the “flowers and chocolates” stage and in at the “divorce court”. You guys are still focussed on the “flowers and chocolates “ end. There will be smiles and champagne shortly. However the VCs are already focussed on the divorce court exit strategy which is kept from you and which neither you nor the general public nor the government are unlikely to enjoy.

You have never had that sinking feeling until you get the VC letter on day 2 with the opening sentence: “Terms in this letter have the same meaning as in the deed of company arrangement”. Under the terms of DOCA, You are required to do ........... and advise the undersigned when it is completed......”. What are then listed are a series of unpalatable actions or prohibitions followed by a legal threat.

‘’If I was you I would hope for the best but actively look for another job and/or a second career.
Its okay, we have some anesthetic from workplace to make it all better now. Deep breaths everyone and here you go,
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Old 19th Jun 2020, 01:18
  #285 (permalink)  
 
Join Date: Jun 2020
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Surely the government can’t whinge about getting what they asked for....hang on....politicians
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Old 19th Jun 2020, 01:25
  #286 (permalink)  
 
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the government must be angry if Benson is writing about it. he is the main focus of drops out of this coalition government
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Old 19th Jun 2020, 03:06
  #287 (permalink)  
 
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Originally Posted by ozbiggles View Post
The government wanted a market led solution, that is what it is going to get so anything they say now is worthless.
You’ve absolutely nailed it!
They wanted a market led solution and that’s what they’re now getting, so they should just shut the [email protected]#k up!
The Bullwinkle is offline  
Old 19th Jun 2020, 04:38
  #288 (permalink)  
 
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Originally Posted by Ragnor View Post
Senior Morrison government ministers are privately furious with administrators trying to salvage Virgin Australia, amid claims the process has been botched and concerns that regional routes and jobs could be slashed by the two US hedge funds vying for the airline.

The only serious Australian bidder, which had promised to guarantee regional services through a reduced cost base, has been knocked out.
So the government is furious that a dual opportunity to spruik “Aussie jobs in the Bush” they didn’t have to lift a finger to achieve and a way to cut terms and conditions to the bone to stick it to the unions could be lost?
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Old 19th Jun 2020, 08:59
  #289 (permalink)  
 
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Didn’t JobKeeper come in $60 Billion under budget.. surely they could set a side $10 billion of what was going to be spent to invest in industry/business with the hope of good return in a few years...set aside $10bn and put $1bn into VA as a transport industry investment with Cyrus.

D******d Dan in Victoria set fire and gifted $1bn to private enterprise for nothing to happen and a project to be cancelled...
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Old 19th Jun 2020, 09:37
  #290 (permalink)  
 
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Lol, what does Andrews have to do with the woefully miscalculated Jobkeeper budget?
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Old 19th Jun 2020, 10:43
  #291 (permalink)  
 
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Originally Posted by Superman1 View Post
Didn’t JobKeeper come in $60 Billion under budget.. surely they could set a side $10 billion of what was going to be spent to invest in industry/business with the hope of good return in a few years...set aside $10bn and put $1bn into VA as a transport industry investment with Cyrus.

D******d Dan in Victoria set fire and gifted $1bn to private enterprise for nothing to happen and a project to be cancelled...
Look it’s been done to death but there is no good return pumping money into this business.

Taxpayers should not be funding this operation that is nothing but a victim of its own poor management decisions.

Canberra has been very vocal about not assisting such corporates and rightly so.

Labor will always come to the mercy of any failed private business. Scurrah lost me when he had all these organized Labor pressers, going against the governments hard ball approach.

I just don’t get it. Taxpayers funding your screwups that have been foreshadowed for a good 5 years. It’s a Singapore and Etihad problem.

Canberra will let this operation fall over. They won’t give it a cent it’s blatantly obvious now after what 20 desperate calls for help from Scurrah. ScoMo won’t lose votes for not funding this mess, but he will if he backtracks and fronts up some cash. Because like myself taxpayers will be pissed, and he will lose my vote.
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Old 19th Jun 2020, 11:10
  #292 (permalink)  
 
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Originally Posted by wheels_down View Post
Look it’s been done to death but there is no good return pumping money into this business.

Taxpayers should not be funding this operation that is nothing but a victim of its own poor management decisions.

Canberra has been very vocal about not assisting such corporates and rightly so.

Labor will always come to the mercy of any failed private business. Scurrah lost me when he had all these organized Labor pressers, going against the governments hard ball approach.

I just don’t get it. Taxpayers funding your screwups that have been foreshadowed for a good 5 years. It’s a Singapore and Etihad problem.

Canberra will let this operation fall over. They won’t give it a cent it’s blatantly obvious now after what 20 desperate calls for help from Scurrah. ScoMo won’t lose votes for not funding this mess, but he will if he backtracks and fronts up some cash. Because like myself taxpayers will be pissed, and he will lose my vote.
I don’t think anybody’s arguing your point.
But the government can’t then turn around and say they’re not happy with the process as it is of absolutely no concern of theirs. They’ve made that abundantly clear.
The Bullwinkle is offline  
Old 19th Jun 2020, 12:36
  #293 (permalink)  
 
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Originally Posted by wheels_down View Post
Look it’s been done to death but there is no good return pumping money into this business.

Taxpayers should not be funding this operation that is nothing but a victim of its own poor management decisions.

Canberra has been very vocal about not assisting such corporates and rightly so.

Labor will always come to the mercy of any failed private business. Scurrah lost me when he had all these organized Labor pressers, going against the governments hard ball approach.

I just don’t get it. Taxpayers funding your screwups that have been foreshadowed for a good 5 years. It’s a Singapore and Etihad problem.

Canberra will let this operation fall over. They won’t give it a cent it’s blatantly obvious now after what 20 desperate calls for help from Scurrah. ScoMo won’t lose votes for not funding this mess, but he will if he backtracks and fronts up some cash. Because like myself taxpayers will be pissed, and he will lose my vote.
well if the following is true:

“Virgin Australia administrator Deloitte has also been put on notice that the sale of the failed airline could be blocked by the Morrison government if the successful bidder didn’t issue assurances to maintain regional services and jobs.”

staunch free market and minimal government intervention proponents like yourself should probably be considering not voting for Scomo regardless of weather or not they put any money into virgin.
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Old 19th Jun 2020, 16:49
  #294 (permalink)  

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Originally Posted by TimmyTee View Post
Lol, what does Andrews have to do with the woefully miscalculated Jobkeeper budget?
The Jury's still out, but we'll have to wait & see what his signing up to China's Belt & Road will cost us.
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Old 19th Jun 2020, 21:58
  #295 (permalink)  
 
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The government can not block a commercial process where legal requirements have been followed.

They might not like the outcome, but there is a huge gap between “not liking” and being able to actually prevent this process.


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Old 19th Jun 2020, 23:20
  #296 (permalink)  
 
Join Date: Jun 2019
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Why are the unions favouring Cyrus? Latest has them floundering around looking for cash to full fill the purchase. Bain has a global pool of 25B they can gain access to.
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Old 20th Jun 2020, 00:22
  #297 (permalink)  
 
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Originally Posted by Ragnor View Post
Why are the unions favouring Cyrus? Latest has them floundering around looking for cash to full fill the purchase. Bain has a global pool of 25B they can gain access to.
Gee, I don’t know. Maybe because they know that Carla doesn’t give a s#$t about the workers, hence the fact that she is being excluded from all meetings with the unions.
A leopard never changes its spots!

https://www.smh.com.au/national/cbd-...17-p553fj.html

The local boss of investment giant Bain Capital, Mike Murphy, is in the midst of a corporate battle. His foe is the Richard Branson-backed investment firm, Cyrus Capital. The prize is Virgin Australia.

Murphy, a former Olympic diver, had some early wins. Bain elbowed heavyweight investors including Ben Gray’s BGH and US-investment giant Oaktree Capital out of contention for the airline in the first round of bidding. He also snared former Jetstar chief executive Jayne Hrdlicka and insolvency guru Mark Mentha as advisers for Bain’s bid.

Former Jetstar CEO Jayne Hrdlicka and insolvency guru Mark Mentha won't be joining Bain Capital's Mike Murphy (centre) in future meetings with Virgin's unions. CREDIT:JOE BENKE

It’s just too bad he’s been told that he can’t bring these two advisers into the final negotiations. Union leaders have drawn the line at dealing with Hrdlicka and Mentha, citing ill will from Hrdlicka’s time at Jetstar - not the Transport Workers Union’s favourite company - and Mentha’s role advising on the failed Ansett rescue deal in 2001.

Sources close to Bain’s bid have confirmed that talks between Bain and prospective union stakeholders are now occurring on a "principal to principal" basis. In a meeting between Bain and union representatives on Tuesday, Hrdlicka was not present. Mentha attended but took a back seat. CBD is told Mentha and Hrdlicka will not be in union meetings going forward.
Maybe Hrdlicka needs to pick up a few tips from her neighbour and tennis pal Josh Frydenberg on how to have her own Road to Damascus conversion to the union cause as he did during the pandemic. It might determine whether she is in the running for the Virgin CEO job having been abruptly dumped by a2 Milk before Christmas.
The ACTU is leading the negotiations for 11 major stakeholder unions, including the Air Services Union and the TWU, representing Virgin’s 9000 employees who are owed about $450 million.
https://www.theaustralian.com.au/bus...468d1032ce9c88

One union member even started a hashtag on Twitter this week that read #IfBainNoJayne.
Take Jayne out of the equation and you’d probably have yourself a deal!

Last edited by The Bullwinkle; 20th Jun 2020 at 00:46.
The Bullwinkle is offline  
Old 20th Jun 2020, 01:13
  #298 (permalink)  
 
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So they don't like Mentha because of the KM role as Ansett administrators yet they were dealing with the ACTU during that whole process! The Fox/Lew bid was considered to be very union friendly. People have very short memories. Why does anyone think that the ACTU are going to be more successful this time than the last?
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Old 20th Jun 2020, 01:35
  #299 (permalink)  
 
Join Date: Apr 2020
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Administrators are not here to win friends. Their sole purpose is to maximise the return to creditors. If maximising that return to creditors involves an equity injection and ownership change through VCs, that's exactly what they will do. I don't know that the unions will have much say in this and they are hardly likely to walk away from something if that keeps a percentage of staff at work.

Unions refusing a deal and forcing everyone out of work does not seem an option.

Aside from that, no one really knows what the 2 VCs will come up with as a firm offer - it may be so low that the administrators need to re think where this is all headed.

Almost in the too hard basket.


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Old 20th Jun 2020, 02:11
  #300 (permalink)  
 
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Originally Posted by The Bullwinkle View Post
Gee, I don’t know. Maybe because they know that Carla doesn’t give a s#$t about the workers, hence the fact that she is being excluded from all meetings with the unions.
A leopard never changes its spots!
I don't think either care about the workers to be honest they're both equity firms. Both Bain and Cyrus will do an Anchorage capital repeat.
Ragnor is offline  

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