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20 buyers now circling Virgin Australia

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20 buyers now circling Virgin Australia

Old 19th Jun 2020, 11:36
  #301 (permalink)  
 
Join Date: Sep 2005
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Originally Posted by wheels_down View Post
Look itís 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 donít get it. Taxpayers funding your screwups that have been foreshadowed for a good 5 years. Itís a Singapore and Etihad problem.

Canberra will let this operation fall over. They wonít give it a cent itís blatantly obvious now after what 20 desperate calls for help from Scurrah. ScoMo wonít 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:

ďVirgin 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 didnít issue assurances to maintain regional services and jobs.Ē

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, 15:49
  #302 (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, 20:58
  #303 (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, 22:20
  #304 (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 19th Jun 2020, 23:22
  #305 (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; 19th Jun 2020 at 23:46.
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Old 20th Jun 2020, 00:13
  #306 (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, 00:35
  #307 (permalink)  
 
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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, 01:11
  #308 (permalink)  
 
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Originally Posted by The Bullwinkle View Post
Gee, I donít know. Maybe because they know that Carla doesnít 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.
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Old 20th Jun 2020, 01:34
  #309 (permalink)  
 
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Originally Posted by Ragnor View Post
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.
At the end of the day youíre probably right.
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Old 20th Jun 2020, 01:53
  #310 (permalink)  
 
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I wouldn’t read too much into the union saying which side they are on. It’s more negotiation and even if true, which I’m sure it is... its coordinated announcement before binding bids are complete needs scrutiny.

If you were the unions and you thought Cyrus were going to be successful you wouldn’t poke the Bain bear. Unless of course the unions actually don’t care, they want the best offer with the most jobs secured. 👍
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Old 20th Jun 2020, 02:48
  #311 (permalink)  
 
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The unions will just want to protect their turf and increase their power. If I know them, they will be offered a carrot to get them to MAKE their members eat the chosen VC [email protected]!$ sandwich.

ĎíThe key is understanding the VC exit strategy - which nobody is talking about. It will be a closely guarded secret and most likely vile for employees and the Australian public. Bain appears to be in the habit of gorging itself on management fees and loading companies with debt - then it exits and the company crashes. To me, the attraction of virgin is the huge cash flows involved in running an airline.

Bain is I think, the nastier of the two. Their former CEO was Mitt Romney, not a likeable individual in my opinion.
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Old 20th Jun 2020, 07:13
  #312 (permalink)  
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Is it true that VIPA are advising its members to vote no at the creditors meeting if the administrators select Bain over Cyrus due to a misconception that a no vote will automatically transfer the bid back to Cyrus?

Surely they aren't that stupid???
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Old 20th Jun 2020, 07:37
  #313 (permalink)  
 
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So how are the secured creditors going to vote?..if secured creditors vote one way, and the employees/bondholders vote another, which way is Deloitte going to cast?

It may be a unanimous decision, and for Virgins sake...I hope so. This union puff might be a shot across the bow of the secured creditors or to get Bain to lift their game. You would just keep quiet otherwise. Did someone just ask if they were that stupid?

Last edited by crosscutter; 20th Jun 2020 at 07:51.
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Old 20th Jun 2020, 07:40
  #314 (permalink)  
 
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Originally Posted by 34R View Post
Is it true that VIPA are advising its members to vote no at the creditors meeting if the administrators select Bain over Cyrus due to a misconception that a no vote will automatically transfer the bid back to Cyrus?

Surely they aren't that stupid???
Havenít heard that one.
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Old 20th Jun 2020, 08:13
  #315 (permalink)  
 
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Ok, the Administrator picks a successful bidder based on the best overall result for ALL the creditors. Then there is the DOCA vote. IF there is a majority by both creditor numbers AND by creditor debt, the DOCA goes forward. IF there is a majority of one but not the other, then the Administrator has the casting vote. IF the DOCA proposal is voted down the Administrator can try to resurrect another DOCA but the most likely outcome then in this case is Liquidation given the cashflow situation, as this would drag on well past August. I think from about then the Administrator becomes liable for Virgin’s operating losses, so unless there is liquidity from somewhere they would have to liquidate.
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Old 20th Jun 2020, 08:27
  #316 (permalink)  
 
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Originally Posted by slice View Post
Ok, the Administrator picks a successful bidder based on the best overall result for ALL the creditors. Then there is the DOCA vote. IF there is a majority by both creditor numbers AND by creditor debt, the DOCA goes forward. IF there is a majority of one but not the other, then the Administrator has the casting vote. IF the DOCA proposal is voted down the Administrator can try to resurrect another DOCA but the most likely outcome then in this case is Liquidation given the cashflow situation, as this would drag on well past August. I think from about then the Administrator becomes liable for Virginís operating losses, so unless there is liquidity from somewhere they would have to liquidate.
It might be the Administrators call on paper, but in reality itís PS thatís makes the final call. You would never know this and no idea if legal but believe what you want to believe.

The whole appointment of the Administrator was orchestrated from the get go.
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Old 20th Jun 2020, 08:56
  #317 (permalink)  
 
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Originally Posted by wheels_down View Post
It might be the Administrators call on paper, but in reality itís PS thatís makes the final call. You would never know this and no idea if legal but believe what you want to believe.

The whole appointment of the Administrator was orchestrated from the get go.
sounds legit
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Old 20th Jun 2020, 22:14
  #318 (permalink)  
 
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Originally Posted by wheels_down View Post
It might be the Administrators call on paper, but in reality itís PS thatís makes the final call. You would never know this and no idea if legal but believe what you want to believe.

The whole appointment of the Administrator was orchestrated from the get go.
Planning commenced October, with tender for works completed midNov. I've seen the tenders by Clayton's and MEllison.... How that could crash and burn the infamous 4Corners mini-featurette. SHame its not something higher profile, guess the boys at Willoughby didn't value it.

If you don't want to believe this, go back to the happy gas on workplace.
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Old 20th Jun 2020, 22:33
  #319 (permalink)  
 
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Whatever you say para
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Old 21st Jun 2020, 01:34
  #320 (permalink)  
 
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Originally Posted by Buster Hyman View Post
The Jury's still out, but we'll have to wait & see what his signing up to China's Belt & Road will cost us.
Still out on what? Did the federal gov hire Dan to run the numbers of their jobkeeper package? In what way was he responsible for such a ridiculously huge miscalculation..
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