20 buyers now circling Virgin Australia
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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. 👍
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. 👍
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 3@!$ sandwich.
‘’The 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.
‘’The 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.
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???
Surely they aren't that stupid???
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?
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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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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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.
The whole appointment of the Administrator was orchestrated from the get go.
sounds legit
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If you don't want to believe this, go back to the happy gas on workplace.
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..
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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Ex, Mr Mach2point7
Indeed SO!!!- truly must be one, Ripper of a 'Confidentiality Agreement'- one-way express traffic...... or Not????
Rgds all/and the Best...
S28- BE
"A virtuous explanation would be welcome !"
Rgds all/and the Best...
S28- BE
... 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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Bain might have thought Carla was going to save the day. But if the reported comments that she would not get any support from the unions is true, the creditor’s vote will be interesting, especially if Deloitte has to supply the casting vote and Bain was the higher bidder.