20 buyers now circling Virgin Australia
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https://www.google.com.au/amp/s/amp....21-p554oh.html
Bondholders wanting to recapitalize it? Did the miss the memo of the going rate which is two to three times what they even held?
Bondholders wanting to recapitalize it? Did the miss the memo of the going rate which is two to three times what they even held?
Wouldn't it be great if the Bond Holders teamed up with Cyrus to take over Virgin!
This would then ensure a better deal for all and give us a better service Airline which benefits all travelers.
Don't know if it is possible but I reckon it would be the best outcome if it could be done.
I guess we will know more after 1000hrs today.
This would then ensure a better deal for all and give us a better service Airline which benefits all travelers.
Don't know if it is possible but I reckon it would be the best outcome if it could be done.
I guess we will know more after 1000hrs today.
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If I was a bond holder, I wouldn't be stumping up any more cash for a company that has proven itself unable to turn a profit in most of the recent years. And that's before COVID.
In any case, I could not imagine Cyrus (or Bain for that matter) making an "accommodating" agreement with the bond holders that removes or reduces cash from the VCs coffers. It ain't going to happen.
In any case, I could not imagine Cyrus (or Bain for that matter) making an "accommodating" agreement with the bond holders that removes or reduces cash from the VCs coffers. It ain't going to happen.
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Bain might have removed Carla from meetings with the unions, but there will be no such reticence if they eventually get to the winning side of the creditors vote. Ask Jetstar staff what they thought of her management style. Not repeatable here.
Look at the circumstances of her departure from Jetstar and subsequent "shorter" tenancy at A2.
Look at the circumstances of her departure from Jetstar and subsequent "shorter" tenancy at A2.
Last edited by Arctaurus; 21st Jun 2020 at 23:21.
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https://australianaviation.com.au/20...paign=22062020
11th hour??? More like 11th week!
Virgin Blue co-founder Rob Sherrard has been linked with an 11th-hour bid to acquire the airline after the final deadline for bids passed at 10am on Monday.
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To add to Section28-BE's comment, the article in The Australian (21 June) states:
"Speaking on the condition of anonymity, a source familiar with the details of both bids said Bain had...."
Who would be "familiar with the details of both bids" ? The administrator may have a pretty good idea, as they are working closely with both parties. Seems unlikely that they would be leaking this information to the media a couple of days before the bids close. If it is anybody else, then surely the oft repeated "competitive tension bidding process" has been compromised ? A virtuous explanation would be welcome !
"Speaking on the condition of anonymity, a source familiar with the details of both bids said Bain had...."
Who would be "familiar with the details of both bids" ? The administrator may have a pretty good idea, as they are working closely with both parties. Seems unlikely that they would be leaking this information to the media a couple of days before the bids close. If it is anybody else, then surely the oft repeated "competitive tension bidding process" has been compromised ? A virtuous explanation would be welcome !
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I wonder how quickly it'll leak?
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ALAEA chief Steve Purvinas says his union is "unequivocally behind Cyrus", see https://www.airlineratings.com/news/...virgin-rescue/
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Bain likely to close Virgin Australia's invitation-only The Club, https://www.executivetraveller.com/n...lose-its-doors
Now we know why GT is backing Cyrus, he doesn't want to lose his membership to The Club!
Now we know why GT is backing Cyrus, he doesn't want to lose his membership to The Club!
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ex ABC: 'Deloitte, aimed to secure a deal by Tuesday.'
Full Article link here: https://www.abc.net.au/news/2020-06-...unced/12380402
An extract ex the total Article here:
Rgds
S28- BE
An extract ex the total Article here:
'Bain Capital and Cyrus Capital Partners emerge as final bidders for Virgin Australia
'Bain Capital and Cyrus Capital Partners emerge as final bidders for Virgin Australia
By business reporter Nassim Khadem
Posted 10m ago
Two American private equity firms — Bain Capital and Cyrus Capital Partners — have emerged as the final bidders for Virgin Australia, with plans to strip back Australia's second major carrier rather than go head-to-head against Qantas.
Both Bain and Cyrus have indicated they would not attempt to operate the carrier as a full-service airline like Qantas.
Nor would they slim it down entirely so it became a low-budget airline.
Instead, Virgin Australia would re-emerge as a mid-market value service.
Deloitte Restructuring Services partner Vaughan Strawbridge did not comment on the sale process apart from confirming the two bidders and noting the sale would be finalised by Tuesday.
He also confirmed both bidders had also already received approval from the Foreign Investment Review Board (FIRB).
"We would like to acknowledge the assistance of the Federal Government on this front," Mr Strawbridge said in a statement.
"With aviation around the world in the middle of a COVID-induced restricted operations, today we've reached another important milestone in our rigorous and competitive sale process."
......................'
Posted 10m ago
Two American private equity firms — Bain Capital and Cyrus Capital Partners — have emerged as the final bidders for Virgin Australia, with plans to strip back Australia's second major carrier rather than go head-to-head against Qantas.
Key points:
- Two American private equity players have committed to binding offers for Virgin Australia
- Virgin's administrator Deloitte is aiming to secure a deal by next week
- Virgin Mark 2 will likely be a slimmed down mid-market value service
Both Bain and Cyrus have indicated they would not attempt to operate the carrier as a full-service airline like Qantas.
Nor would they slim it down entirely so it became a low-budget airline.
Instead, Virgin Australia would re-emerge as a mid-market value service.
Deloitte Restructuring Services partner Vaughan Strawbridge did not comment on the sale process apart from confirming the two bidders and noting the sale would be finalised by Tuesday.
He also confirmed both bidders had also already received approval from the Foreign Investment Review Board (FIRB).
"We would like to acknowledge the assistance of the Federal Government on this front," Mr Strawbridge said in a statement.
"With aviation around the world in the middle of a COVID-induced restricted operations, today we've reached another important milestone in our rigorous and competitive sale process."
......................'
S28- BE
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[QUOTEVirgin Australia would re-emerge as a mid-market value service][/QUOTE]
Here in lies the problem. Can't match Qantas at full service and can't undercut JQ.
I truly hope they get it right and can turn a profit.
Here in lies the problem. Can't match Qantas at full service and can't undercut JQ.
I truly hope they get it right and can turn a profit.
Interesting that the aim is to "secure a deal by Tuesday". Not 30 June as previously stated. Maybe Tuesday next week = 30 June. One would have thought that the submissions would be pretty weighty and take days to analyse.
Mach, “secure a deal” means agreeing in principle to the broad terms of a deal contained in a relatively short document called “Heads of Agreement” signed by both parties.
The actual mechanics of the deal are then carried out by masses of lawyers and accountants on both sides working together to dot I’s and cross Ts. This is often referred to as the “due diligence” phase and the final purchase price gets adjusted for what gets discovered in the process. For example, no buyer would have done a stocktake or verified tax and super liabilities themselves. They would have accepted the Administrators figures. There would be a mass of details to be analysed, argued and agreed between the Administrators and the winner.
The actual mechanics of the deal are then carried out by masses of lawyers and accountants on both sides working together to dot I’s and cross Ts. This is often referred to as the “due diligence” phase and the final purchase price gets adjusted for what gets discovered in the process. For example, no buyer would have done a stocktake or verified tax and super liabilities themselves. They would have accepted the Administrators figures. There would be a mass of details to be analysed, argued and agreed between the Administrators and the winner.
I believe that is the Tuesday referred to, June 30th.
Not if one already knows the answer.
One would have thought that the submissions would be pretty weighty and take days to analyse.
Interesting Steve Purivinas is saying his union are behind it when no one knows the details yet? Or is Steve the Union? He seems to be very one sided on saying Bain know nothing about aviation in one sentence then in the next says they want to be like Qantas? Bit of a personal gripe in there.
it will be an interesting few days when the details do come out for the future direction.
it will be an interesting few days when the details do come out for the future direction.
Dixon told us when impulse/ jetstar started that his strategy was to squeeze virgin between Jetstar at the bottom and Qantas at the top. They would be in no mans land between cheap (and cheerful?) and a full service product.
That didn't work out so well last time - but without "distractions" and fleet simplicity it might work this time. Good Luck
That didn't work out so well last time - but without "distractions" and fleet simplicity it might work this time. Good Luck
Last edited by PW1830; 22nd Jun 2020 at 10:00.