20 buyers now circling Virgin Australia
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.
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.
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:
Rgds
S28- BE
It won't happen anytime soon. It's a paradigm shift occurring here and and around the World in travel and hence aviation. Get used to it...
I have a little insight into this. Dan was warned six weeks ago that there was a migrant section of the community who put their faith in God, couldn’t give a rats about man made laws, couldn’t speak much english and were not educated. These people were a known risk that demanded special efforts to reach if tragedy was to be avoided. The politically correct Andrews government decided this would be “divisive”, “discriminatory, “racist” and did nothing about a special communications program.
A lot of these folk work in low paid jobs, including security guards. Then, at the badly managed quarantine hotels, nature took its course. Young security guards got together with young quarantine inmates. At least one security guard got a “present” of covid19.
Unfortunately, this lad took his present home to what can be loosely described as “the extended family from hell” an allegedly lawless group whose response to most questions is “get @#$#ed copper”. That gave us, two or three weeks ago, what was euphemistically described as a “large cluster involving multiple households of an extended family”. The rest was predictable. It’s gotten into the bogan underclass along with the immigrant group.
The newspapers and government are still dancing around in little circles trying to avoid saying where, who and how this breakout occurred.
So much for political correctness.
A lot of these folk work in low paid jobs, including security guards. Then, at the badly managed quarantine hotels, nature took its course. Young security guards got together with young quarantine inmates. At least one security guard got a “present” of covid19.
Unfortunately, this lad took his present home to what can be loosely described as “the extended family from hell” an allegedly lawless group whose response to most questions is “get @#$#ed copper”. That gave us, two or three weeks ago, what was euphemistically described as a “large cluster involving multiple households of an extended family”. The rest was predictable. It’s gotten into the bogan underclass along with the immigrant group.
The newspapers and government are still dancing around in little circles trying to avoid saying where, who and how this breakout occurred.
So much for political correctness.
Given the way Victoria is run under Chairman Dan, I’m not even surprised by your report Sunny, and have no doubt it’s close to the truth.
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ex the SMH: Virgin Australia bondholder launches court action...................
So,
been there/done that- check. Now, where to next.......????
Article ex the SMH link here: https://www.smh.com.au/business/comp...07-p559v2.html
Extract here (bolding):
rgds
S28- BE
'the Australian Takeovers Panel'
Article ex the SMH link here: https://www.smh.com.au/business/comp...07-p559v2.html
Extract here (bolding):
Virgin Australia bondholder launches court action to unveil secret Bain deal
Virgin Australia bondholder launches court action to unveil secret Bain deal
By Patrick HatchJuly 8, 2020 — 9.13am
One of Virgin Australia's largest bondholders has launched court action to unseal the secret details of a deal to sell the bankrupt airline to private equity firm Bain Capital as it steps up its efforts to take control of the company.
Broad Peak Investment lodged an interlocutory process in the Federal Court on Tuesday seeking access to the sale agreement between Virgin's administrator Deloitte and Bain.
Bain and Deloitte have refused to say how much the private equity firm will pay Virgin's creditors, which are owed a combined $6.8 billion, or how many of Virgin's 9000 workers will lose their jobs.
Broad Peak, a Singaporean hedge fund, was part of a group of bondholders that proposed swapping their $2 billion in debts for ownership of Virgin. Deloitte passed over the proposal and a rival bid from Cyrus Capital in favour of Bain.
Tuesday's court action comes after it was revealed on Monday that Broad Peak and Hong Kong-based bondholder Tor Investment Management have applied to the Takeovers Panel to intervene in the sale to Bain, arguing the way Deloitte ran the administration was "unacceptable" and blocked them from presenting their alternative deal to creditors at the second creditors' meeting in August.
Broad Peak's legal action is seeking a variation to the court's non-publication order over the Bain deal so that Broad Peak, the Takeovers Panel and any party involved in the Takeovers Panel's proceedings can access the documents.
The bondholder group is being advised by boutique Sydney firm Faraday Associates and lawyers from Corrs Chambers Westgarth. The group's debt-for-equity plan involved pouring $925 million into Virgin to keep the company alive and listed on the Australian Securities Exchange.
Virgin's $2 billion worth of unsecured bonds are owned by 30 large institutional investors and about 6000 "mum and dad" retail investors. Broad Peak is backed by Singapore's sovereign wealth fund Temasek, which held an interest in Virgin through its majority ownership of Singapore Airlines, which in turn owned 20 per cent of Virgin.
More to come
One of Virgin Australia's largest bondholders has launched court action to unseal the secret details of a deal to sell the bankrupt airline to private equity firm Bain Capital as it steps up its efforts to take control of the company.
Broad Peak Investment lodged an interlocutory process in the Federal Court on Tuesday seeking access to the sale agreement between Virgin's administrator Deloitte and Bain.
Bain and Deloitte have refused to say how much the private equity firm will pay Virgin's creditors, which are owed a combined $6.8 billion, or how many of Virgin's 9000 workers will lose their jobs.
Broad Peak, a Singaporean hedge fund, was part of a group of bondholders that proposed swapping their $2 billion in debts for ownership of Virgin. Deloitte passed over the proposal and a rival bid from Cyrus Capital in favour of Bain.
Tuesday's court action comes after it was revealed on Monday that Broad Peak and Hong Kong-based bondholder Tor Investment Management have applied to the Takeovers Panel to intervene in the sale to Bain, arguing the way Deloitte ran the administration was "unacceptable" and blocked them from presenting their alternative deal to creditors at the second creditors' meeting in August.
Broad Peak's legal action is seeking a variation to the court's non-publication order over the Bain deal so that Broad Peak, the Takeovers Panel and any party involved in the Takeovers Panel's proceedings can access the documents.
The bondholder group is being advised by boutique Sydney firm Faraday Associates and lawyers from Corrs Chambers Westgarth. The group's debt-for-equity plan involved pouring $925 million into Virgin to keep the company alive and listed on the Australian Securities Exchange.
Virgin's $2 billion worth of unsecured bonds are owned by 30 large institutional investors and about 6000 "mum and dad" retail investors. Broad Peak is backed by Singapore's sovereign wealth fund Temasek, which held an interest in Virgin through its majority ownership of Singapore Airlines, which in turn owned 20 per cent of Virgin.
More to come
S28- BE
Just struck by a thought. Is it in the interest of the Singaporean bondholders to torpedo the virgin resurrection, so Rexjet can expand into the void? Do temasek or related entities have a stake in Rex?
Sunfish
Then, at the badly managed quarantine hotels, nature took its course. Young security guards got together with young quarantine inmates. At least one security guard got a “present” of covid19.
Unfortunately, this lad took his present home to what can be loosely described as “the extended family from hell” an allegedly lawless group whose response to most questions is “get @#$#ed copper”.
Unfortunately, this lad took his present home to what can be loosely described as “the extended family from hell” an allegedly lawless group whose response to most questions is “get @#$#ed copper”.
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What planet are you on?! Sunfish is not far from the truth. The other question, will Bain go through with the purchase now they have resistance with bond holders and potentially an airline that won’t be able to fly anywhere, I can see QLD closing the border again as the cases are ramping up in NSW and now ACT from ML travelers
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[QUOTE=Ragnor;10831628]What planet are you on?! /QUOTE]
One where referencing YouTube conspiracy videos instead of citing proper peer reviewed sources is considered acceptable. I haven't seen a lot of facts around here, but plenty of finger pointing and speculation. It is a rumour forum after all!
One where referencing YouTube conspiracy videos instead of citing proper peer reviewed sources is considered acceptable. I haven't seen a lot of facts around here, but plenty of finger pointing and speculation. It is a rumour forum after all!
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that in the nicest possible way.
...and potentially an airline that won’t be able to fly anywhere, I can see QLD closing the border again as the cases are ramping up in NSW and now ACT from ML travelers]
TWT, references to lax security and sex:
https://www.theage.com.au/national/v...03-p558og.html
https://www.forbes.com/sites/tamarat.../#7a7ff2a6131d
as for "the family from hell" getting Covid19. That is not public knowledge. Take it from me that it happened.
https://www.theage.com.au/national/v...03-p558og.html
https://www.forbes.com/sites/tamarat.../#7a7ff2a6131d
as for "the family from hell" getting Covid19. That is not public knowledge. Take it from me that it happened.
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Well no ML is not possible until end of August PH doesn’t look like coming to the party anytime soon. My concern is QLD will close off to NSW due to the current increases we are having which initially look to get worse as the weeks go by from School Holidays from the victorians that we’re allowed to rush over the border when Gladys gave 72hrs notice of the Closure. QF 6000 and VAs 5000 could very well be a lot more as the yr rolls by.
7's the key number here. Think about it. 7-Elevens. 7 dwarves. 7, man, that's the number. 7 chipmunks twirlin' on a branch, eatin' lots of sunflowers on my uncle's ranch. You know that old children's tale from the sea. It's like you're dreamin' about Gorgonzola cheese when it's clearly Brie time, baby. Step into my office.
"Cause you're ******* fired!"
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ex the AFR: Why Bain set its sights on Virgin........
AFR article link here: https://www.afr.com/world/north-amer...0200708-p55a0e
Extract:
rgds
S28- BE
Extract:
Why Bain set its sights on Virgin
Why Bain set its sights on Virgin
Jacob Greber
United States correspondent
Jul 9, 2020 – 12.00am
Washington |
Australia's lack of high-speed intercity rail and the reality that road transport cannot compete with aircraft between Sydney, Brisbane and Melbourne was a key reason Bain Capital decided to pursue a Virgin Australia rescue, says the co-managing partner of the US investment giant.
In some of the first public remarks by the media-shy Boston-based firm since it beat a suite of rival suitors for Virgin, Jonathan Lavine described how the company made its final decision to act on a six-hour Zoom call with no fewer than 51 of its top people.
While the Virgin deal was big for Bain's 20-strong investment team in Australia, it was consistent with transactions it had been doing around the globe, Mr Lavine said.
"One of the things that positioned us a little differently in the process is, besides having 20 people in Australia, we were able to pull in resources from all over the world – marketing experts, people who had worked on other types of airlines, leasing experts, people who focus on human resources, people who focus on even currency and fuel," he said.
Mr Lavine insisted the Australian deal, in which Bain formally took control of Virgin Australia as of July 1, when it started paying the distressed airline's bills, was "not necessarily a change in our strategy".
"We have patiently looked in Australia and found companies that we have had some success with [including] MYOB, Retail Zoo just to name a couple," he said.
"But we saw this opportunity come along. If we were just Australia-focused it might seem a bit large, but it's completely consistent in the strategy of our $US105 billion [$151 billion] global footprint."
I think it’s important in any situation with two big players to understand the strengths and weaknesses of each, and understand the part of the market you occupy.— Jonathan Lavine, Bain Capital co-managing partner
The deal has not been without controversy. Two Virgin Australia bondholders, Tor Investment Management and Broad Peak Investment Advisers, are fighting to unlock the confidential terms surrounding the sale to Bain Capital, just days after they asked the Takeovers Panel to intervene in the process fearing they will see little return for their investment in the airline.
Mr Lavine made the comments on a video call hosted by outgoing Australian consul-general in New York, Alastair Walton, and come as concerns grow among some investors over the duration of the pandemic and its impact on vulnerable sectors such as aviation.
Different strategies
Asked about the impact of COVID-19 on Virgin and Qantas' decision last month to fire 6000 workers, Mr Lavine said it was "a little early to have definitive views on that, and obviously I wouldn't make any comments until something has been worked out with the company".
"But I would say that Qantas and Virgin are different companies with different strategies," he said.
"I think it’s important in any situation with two big players to understand the strengths and weaknesses of each, and understand the part of the market you occupy ... what your customer proposition is, and make sure you focus on that.
"As compared to each one trying to copy the other one, there are very distinct differences – obviously with Qantas in particular being the international routes and its market share."
More generally, Mr Lavine noted that unlike the US aviation market, which was dominated by "lots of small hops, and hub spokes", Australia's was "the triangle and some very large cities with a lot of travel that do not have rail or driving substitutes".
"We felt we could envision a company emerging out of the administration process that could be stronger and takes into account a lot of the things it experienced during the cycle," he said.
Mr Lavine also revealed some of his thoughts about the disconnect between US sharemarkets and a global economy still reeling from the effects of the pandemic.
Noting that stock prices are the "present value of expectations going forward", and not just over the next year, it was not inconsistent to have a tough economy but also a growing realisation of the potential of big US tech companies and America's position in the sector.
"It's really a relatively few very large tech companies that are driving the stock market," he said. "The Russel 2000 is still negative for the year, for example, which are more mid-size companies.
"More broadly, the paradox of COVID is, I think, [that] most people are comfortable that the world will figure this out. There will be vaccines, there will be therapeutics. And the question is when.
"I think most people would say within two years, you’re pretty sure this is going to be OK. And within six months it’s more of a 50:50 venture."
Another issue was that the pandemic's hardest-hit place in the world was also its largest economy, he said.
"Therefore, the challenge we have is to look beyond what’s going on right now and understand how much permanent damage is being done to companies, to industries, how much damage is being done to consumer psyches all over the world," Mr Lavine said.
"Are people thinking about travel, restaurants, even going to their offices differently?"
He also said the pandemic did not remove the reality that "maybe you need to invest", even if you recognised that "it's going to be a rough couple of years".
Investing in good companies, or making good loans or backing good venture companies meant "making sure they're capitalised to be able to have enough cash" to get through the lean times.
Mr Lavine said Bain was seeing opportunities around the world and across many different sectors, but warned the current circumstances probably favoured investment firms "with a large footprint who can weigh off different parts of the world".
"We're probably least busy in the US right now because so much of the United States is still locked down," he said. "Europe is reopening, I do Zoom calls with Hong Kong and Seoul [where] they're in the office and in a very different place in the cycle.
"We're seeing property and the rebound of consumer and things related to that in China. We're seeing rescue financing and things like that in the US, so it’s really much more nuanced than you would be used to seeing."
United States correspondent
Jul 9, 2020 – 12.00am
Washington |
Australia's lack of high-speed intercity rail and the reality that road transport cannot compete with aircraft between Sydney, Brisbane and Melbourne was a key reason Bain Capital decided to pursue a Virgin Australia rescue, says the co-managing partner of the US investment giant.
In some of the first public remarks by the media-shy Boston-based firm since it beat a suite of rival suitors for Virgin, Jonathan Lavine described how the company made its final decision to act on a six-hour Zoom call with no fewer than 51 of its top people.
While the Virgin deal was big for Bain's 20-strong investment team in Australia, it was consistent with transactions it had been doing around the globe, Mr Lavine said.
"One of the things that positioned us a little differently in the process is, besides having 20 people in Australia, we were able to pull in resources from all over the world – marketing experts, people who had worked on other types of airlines, leasing experts, people who focus on human resources, people who focus on even currency and fuel," he said.
Mr Lavine insisted the Australian deal, in which Bain formally took control of Virgin Australia as of July 1, when it started paying the distressed airline's bills, was "not necessarily a change in our strategy".
"We have patiently looked in Australia and found companies that we have had some success with [including] MYOB, Retail Zoo just to name a couple," he said.
"But we saw this opportunity come along. If we were just Australia-focused it might seem a bit large, but it's completely consistent in the strategy of our $US105 billion [$151 billion] global footprint."
I think it’s important in any situation with two big players to understand the strengths and weaknesses of each, and understand the part of the market you occupy.— Jonathan Lavine, Bain Capital co-managing partner
The deal has not been without controversy. Two Virgin Australia bondholders, Tor Investment Management and Broad Peak Investment Advisers, are fighting to unlock the confidential terms surrounding the sale to Bain Capital, just days after they asked the Takeovers Panel to intervene in the process fearing they will see little return for their investment in the airline.
Mr Lavine made the comments on a video call hosted by outgoing Australian consul-general in New York, Alastair Walton, and come as concerns grow among some investors over the duration of the pandemic and its impact on vulnerable sectors such as aviation.
Different strategies
Asked about the impact of COVID-19 on Virgin and Qantas' decision last month to fire 6000 workers, Mr Lavine said it was "a little early to have definitive views on that, and obviously I wouldn't make any comments until something has been worked out with the company".
"But I would say that Qantas and Virgin are different companies with different strategies," he said.
"I think it’s important in any situation with two big players to understand the strengths and weaknesses of each, and understand the part of the market you occupy ... what your customer proposition is, and make sure you focus on that.
"As compared to each one trying to copy the other one, there are very distinct differences – obviously with Qantas in particular being the international routes and its market share."
More generally, Mr Lavine noted that unlike the US aviation market, which was dominated by "lots of small hops, and hub spokes", Australia's was "the triangle and some very large cities with a lot of travel that do not have rail or driving substitutes".
"We felt we could envision a company emerging out of the administration process that could be stronger and takes into account a lot of the things it experienced during the cycle," he said.
Mr Lavine also revealed some of his thoughts about the disconnect between US sharemarkets and a global economy still reeling from the effects of the pandemic.
Noting that stock prices are the "present value of expectations going forward", and not just over the next year, it was not inconsistent to have a tough economy but also a growing realisation of the potential of big US tech companies and America's position in the sector.
"It's really a relatively few very large tech companies that are driving the stock market," he said. "The Russel 2000 is still negative for the year, for example, which are more mid-size companies.
"More broadly, the paradox of COVID is, I think, [that] most people are comfortable that the world will figure this out. There will be vaccines, there will be therapeutics. And the question is when.
"I think most people would say within two years, you’re pretty sure this is going to be OK. And within six months it’s more of a 50:50 venture."
Another issue was that the pandemic's hardest-hit place in the world was also its largest economy, he said.
"Therefore, the challenge we have is to look beyond what’s going on right now and understand how much permanent damage is being done to companies, to industries, how much damage is being done to consumer psyches all over the world," Mr Lavine said.
"Are people thinking about travel, restaurants, even going to their offices differently?"
He also said the pandemic did not remove the reality that "maybe you need to invest", even if you recognised that "it's going to be a rough couple of years".
Investing in good companies, or making good loans or backing good venture companies meant "making sure they're capitalised to be able to have enough cash" to get through the lean times.
Mr Lavine said Bain was seeing opportunities around the world and across many different sectors, but warned the current circumstances probably favoured investment firms "with a large footprint who can weigh off different parts of the world".
"We're probably least busy in the US right now because so much of the United States is still locked down," he said. "Europe is reopening, I do Zoom calls with Hong Kong and Seoul [where] they're in the office and in a very different place in the cycle.
"We're seeing property and the rebound of consumer and things related to that in China. We're seeing rescue financing and things like that in the US, so it’s really much more nuanced than you would be used to seeing."
S28- BE