20 buyers now circling Virgin Australia
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Luckily Bain had the cash to purchase VA.
Virgin Australia is getting a lift from new owners Bain Capital. Picture: David ClarkVirgin Australia would not have been able to continue to operate until the August 22 creditors’ meeting if administrators had not negotiated a sale and interim funding by June 30.
Documents filed in the Federal Court this week outlined the urgency of the situation facing the airline, which went into administration on April 21 with debts of $6.8bn.
An affidavit by administrator Vaughan Strawbridge also revealed an initial 85 groups were approached or registered their interest in buying Virgin Australia
As the process unfolded, 19 parties considered “potential purchasers” were given access to the data room, with the group whittled down to the final two — Bain Capital and Cyrus Capital Partners — over six weeks.
“The administrators formed the view the sale process needed to be conducted on an expedited time frame due to the significant cash restraints facing Virgin, the impact of COVID-19 on the business and the need to retain key contracts, assets, employees and regulatory approvals,” the affidavit said.
To assist with consideration of the competing proposals, Bain and Cyrus were asked to agree to provide interim funding for Virgin Australia so the airline could keep flying.
“The Virgin companies would not be able to continue to trade up to the date of the second creditors meeting (August 22) without receipt of the funding,” Mr Strawbridge’s affidavit said.
“That result would potentially lead to the administrators having to make decisions in relation to maintenance, flying schedules and other matters that may lead to the loss of necessary regulatory approvals and slots for takeoff and landing at airports, and more generally, result in a worse outcome for creditors.”
Virgin Australia has more than 60 planes parked at airports around the country, including in Brisbane. Picture: AAPThe deal ultimately struck with successful bidder Bain Capital was considered the “most favourable transaction available for the benefit of creditors and the Virgin companies as a whole, in so far as it provided the greatest prospect of the business remaining intact”.
Further details of the transaction were filed with the court in confidence, given the commercial sensitivity of the information.
Federal Court judge John Middleton granted the orders sought by the administrator excusing them from the payment of any debt or liability should the sale not go through and the property and assets of Virgin not be sufficient to cover those costs.
The interim funding provided by Bain Capital saw Virgin Australia announce a beefed-up domestic schedule this week, with the addition of 17 routes to the 11 currently being flown under the *federal government-subsidised minimal network.
In a further boost for the airline, Brisbane Airport confirmed Virgin Australia would be the first carrier to use the new parallel runway when it opened on Sunday week, July 12.
“As our airport’s home carrier and an airline that has always shown great confidence in Brisbane and Queensland as a place to do business, I am delighted to have Virgin Australia fly the first departure from Brisbane’s new runway,” said airport CEO Gert-Jan de Graaff.
“COVID-19 may have hampered some of our plans to mark this historic moment but it certainly has not detracted from our pride and sense of accomplishment.”
Virgin Australia chief executive Paul Scurrah said that the runway opening was a “turning point not only for Virgin Australia but for the broader tourism sector”.
“We’re really looking forward to marking this special occasion with the first departure to Cairns as part of the 73rd anniversary of flights between Brisbane and tropical north Queensland,” Mr Scurrah said.
Time would have run out for Virgin Australia
Virgin Australia is getting a lift from new owners Bain Capital. Picture: David ClarkVirgin Australia would not have been able to continue to operate until the August 22 creditors’ meeting if administrators had not negotiated a sale and interim funding by June 30.Documents filed in the Federal Court this week outlined the urgency of the situation facing the airline, which went into administration on April 21 with debts of $6.8bn.
An affidavit by administrator Vaughan Strawbridge also revealed an initial 85 groups were approached or registered their interest in buying Virgin Australia
As the process unfolded, 19 parties considered “potential purchasers” were given access to the data room, with the group whittled down to the final two — Bain Capital and Cyrus Capital Partners — over six weeks.
“The administrators formed the view the sale process needed to be conducted on an expedited time frame due to the significant cash restraints facing Virgin, the impact of COVID-19 on the business and the need to retain key contracts, assets, employees and regulatory approvals,” the affidavit said.
To assist with consideration of the competing proposals, Bain and Cyrus were asked to agree to provide interim funding for Virgin Australia so the airline could keep flying.
“The Virgin companies would not be able to continue to trade up to the date of the second creditors meeting (August 22) without receipt of the funding,” Mr Strawbridge’s affidavit said.
“That result would potentially lead to the administrators having to make decisions in relation to maintenance, flying schedules and other matters that may lead to the loss of necessary regulatory approvals and slots for takeoff and landing at airports, and more generally, result in a worse outcome for creditors.”
Virgin Australia has more than 60 planes parked at airports around the country, including in Brisbane. Picture: AAPThe deal ultimately struck with successful bidder Bain Capital was considered the “most favourable transaction available for the benefit of creditors and the Virgin companies as a whole, in so far as it provided the greatest prospect of the business remaining intact”.Further details of the transaction were filed with the court in confidence, given the commercial sensitivity of the information.
Federal Court judge John Middleton granted the orders sought by the administrator excusing them from the payment of any debt or liability should the sale not go through and the property and assets of Virgin not be sufficient to cover those costs.
The interim funding provided by Bain Capital saw Virgin Australia announce a beefed-up domestic schedule this week, with the addition of 17 routes to the 11 currently being flown under the *federal government-subsidised minimal network.
In a further boost for the airline, Brisbane Airport confirmed Virgin Australia would be the first carrier to use the new parallel runway when it opened on Sunday week, July 12.
“As our airport’s home carrier and an airline that has always shown great confidence in Brisbane and Queensland as a place to do business, I am delighted to have Virgin Australia fly the first departure from Brisbane’s new runway,” said airport CEO Gert-Jan de Graaff.
“COVID-19 may have hampered some of our plans to mark this historic moment but it certainly has not detracted from our pride and sense of accomplishment.”
Virgin Australia chief executive Paul Scurrah said that the runway opening was a “turning point not only for Virgin Australia but for the broader tourism sector”.
“We’re really looking forward to marking this special occasion with the first departure to Cairns as part of the 73rd anniversary of flights between Brisbane and tropical north Queensland,” Mr Scurrah said.
Virgin Australia chief executive Paul Scurrah said that the runway opening was a “turning point not only for Virgin Australia but for the broader tourism sector”.
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Yigy2, remember I said these deals are characterised by a “flowers and chocolates”start and a “divorce court” end. Bain already know what their exit strategy is. They won’t tell you or anyone else. That’s the divorce court end. Mr. Murphy, God bless him Yigy, is giving you the “flowers and chocolates” front end, that is exactly what that article depicts.
Lets hope I’m wrong again, but I have bitter experience of the behaviour of VC’S once the ink is dry on the final agreement. It isn’t pretty.
BTW, Bain will have signed a /“heads of agreement “ if the details of what the Administrators have told them aren’t true then no deal.
Lets hope I’m wrong again, but I have bitter experience of the behaviour of VC’S once the ink is dry on the final agreement. It isn’t pretty.
BTW, Bain will have signed a /“heads of agreement “ if the details of what the Administrators have told them aren’t true then no deal.
I'm still waiting (VA are still waiting) for the flowers and chocolates. Bain have had the keys for a week and not one email, not one hello from them, however at least
PS is treating us like real people with respect. Staff have had more input from PS in the last 3 months than JB in his last 5 years.
Though Murphy and his side kick what's her name starts with an H (sorry I can't pronounce it, to hell with it I'II just call her Eva Braun!) are planning a workforce of 9000 down to 5000.
Normally your treated like a number in an airline though this is a few notches below that. No flowers no chocolates and you can forget the divorce court (don't need one)
because this could go straight to a blood bath. All the unions are sharpening up the swords.
My keyboard has rage in it this morning when I hit submit it will be more relaxed. Struth.
What were you expecting from any of the buyers? Name one comparable airline that hasn’t sacked 20-50% of its workforce? Indeed your hero PS had already boned Tiger and Vanz even before VA.International is dead for 12-18 months, the Tasman will be a bloodbath of capacity.
There seems to be some thought Cryus was going to expand the airline, give everyone a leather wallet and pay rise?
There seems to be some thought Cryus was going to expand the airline, give everyone a leather wallet and pay rise?
Turn left, Bain are still in flowers and chocolates mode. There is still, I think, a creditors meeting. I’m not sure what else has to be signed off, but I don’t think they are in full control yet. Once they are no longer a listed public company, the doors close and they can do what they like to you in private.
I don't think Bain are in the flowers and chocolate mode at all. I think its more likely to be the McEnroe mode:
https://www.abc.net.au/news/2020-07-...-deal/12425944
https://www.abc.net.au/news/2020-07-...-deal/12425944
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I don't think Bain are in the flowers and chocolate mode at all. I think its more likely to be the McEnroe mode:
https://www.abc.net.au/news/2020-07-...-deal/12425944
https://www.abc.net.au/news/2020-07-...-deal/12425944
Get, the Fcuk-Outta-Here.....!!!!
Trust, that is 'base' enough for y'all....
Evening/& rgds all
S28- BE
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ex AAP/The McIvor Times: Virgin, unions urge aviation virus support.....
ex AAP Newswire- via 'The McIvor Times' (....yup ??)
Article link here: https://www.mcivortimes.com.au/natio...-virus-support
Extract here:
Rgds
S28- BE
Article link here: https://www.mcivortimes.com.au/natio...-virus-support
Extract here:
'Jul 07 2020
Virgin Australia and unions have reiterated calls for wage subsidies to be extended after Victoria and NSW agreed to shut their border.
Employers and workers have written to Prime Minister Scott Morrison asking for "aviation keeper" to be paid to all workers in the sector.
The scheme would extend beyond September, when JobKeeper payments are slated to end, and be phased out as domestic and international borders reopen.
Confidence in flying returning to normal would be key to phasing out coronavirus support.
A range of other companies in the sector, including catering and air services providers, also signed the letter.
Transport Workers' Union national secretary Michael Kaine says the federal government needs to decide if it would risk mass redundancies in aviation.
"We are at a critical moment where businesses and jobs are just about clinging on but without a signal of ongoing support, they will be lost," he said.
"The border closure between NSW and Victoria is a major setback for the industry, and comes as the two domestic airlines struggle."
The border between the two states will close from midnight on Tuesday.'
Virgin, unions urge aviation virus support
By AAP NewswireVirgin Australia and unions have reiterated calls for wage subsidies to be extended after Victoria and NSW agreed to shut their border.
Employers and workers have written to Prime Minister Scott Morrison asking for "aviation keeper" to be paid to all workers in the sector.
The scheme would extend beyond September, when JobKeeper payments are slated to end, and be phased out as domestic and international borders reopen.
Confidence in flying returning to normal would be key to phasing out coronavirus support.
A range of other companies in the sector, including catering and air services providers, also signed the letter.
Transport Workers' Union national secretary Michael Kaine says the federal government needs to decide if it would risk mass redundancies in aviation.
"We are at a critical moment where businesses and jobs are just about clinging on but without a signal of ongoing support, they will be lost," he said.
"The border closure between NSW and Victoria is a major setback for the industry, and comes as the two domestic airlines struggle."
The border between the two states will close from midnight on Tuesday.'
S28- BE
Reading the 'tea leaves' I am now of the opinion passenger aviation activity will not be back to previous levels for at least 7 years. If there are any delays to the settlement of Virgin by Bains there is a possibility Bains may walk away or ask for a restructure of the deal. This is due to the rapidly declining Australian economy.