20 buyers now circling Virgin Australia
https://www.theage.com.au/business/c...26-p556d3.html
The New York-headquartered firm said that after submitting a bidding offer for Virgin on Monday as one of two short-listed bidders, "administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer".
Cyrus said in a statement that as a result, it withdrew its offer on Friday morning.
"I am disappointed that it has become necessary to withdraw our offer," said Cyrus's founder and chief investment officer, Stephen Freidheim.
"Cyrus firmly believes that the Australian aviation industry has a bright future and would be willing to reinstate our offer if the administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders."
Cyrus said in a statement that as a result, it withdrew its offer on Friday morning.
"I am disappointed that it has become necessary to withdraw our offer," said Cyrus's founder and chief investment officer, Stephen Freidheim.
"Cyrus firmly believes that the Australian aviation industry has a bright future and would be willing to reinstate our offer if the administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders."
Weren't Cyrus supposed to be the "union friendly" bid? It would seem that the administrators don't give any credence to the ACTU's preferred bidder. One bidder who at any point in the process can just walk away. Is this really any different to what happened to Ansett?
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I was referring to the remaining bidder-Bain. They have stated that they want to take Virgin back to its Virgin Blue beginnings but until they sign the change of ownership documents and transfer the money then there is no deal.
What a professional operation these administrators appear to run. I also wonder if Bain are far from running for the hills now given the climate of the Australian aviation industry now and for the coming years ahead. What is left if they do? The bondholders last minute plan to take control?
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Also- ex ExecTraveller/& NY Times: Cyrus abandons Virgin Australia bid,..........
Link here: https://www.executivetraveller.com/n...e-pilot-s-seat
Extract here (bolding):
Ex The New York Times: https://www.nytimes.com/reuters/2020...sultPosition=9
Interesting, bit of 'push/shove'...., or stuff-you we're gone!!!! ???
Rgds
S28- BE
Extract here (bolding):
Cyrus abandons Virgin Australia bid, putting Bain in the pilot's seat-
Cyrus Capital is walking away from the content to take over Virgin Australia, in a dramatic move which sets up competitor Bain Capital to take control of the airline.
In a statement issued on Friday morning, founder and chief investment officer of the New York-based investment and private equity firm, Stephen Freidheim, said "I am disappointed that it has become necessary to withdraw our offer."
The statement cited "a lack of engagement by the administrator" Deloitte as the reason for the shock decision.
........
Cyrus Capital is walking away from the content to take over Virgin Australia, in a dramatic move which sets up competitor Bain Capital to take control of the airline.
In a statement issued on Friday morning, founder and chief investment officer of the New York-based investment and private equity firm, Stephen Freidheim, said "I am disappointed that it has become necessary to withdraw our offer."
The statement cited "a lack of engagement by the administrator" Deloitte as the reason for the shock decision.
........
SYDNEY — Cyrus Capital Partners said on Friday it had withdrawn its bid for Virgin Australia Holdings Ltd, citing a lack of engagement by the airline's administrator, but said it was willing to reinstate it under certain conditions.
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S28- BE
Last edited by Section28- BE; 25th Jun 2020 at 23:15. Reason: NY Times quote...
Withdrawing your bid because they didn’t return your calls. Seems like an over reaction. Must not have been all that interested in the company to begin with. Can anyone say cold feet. I feel for you all a Virgin under Carla’s (non)leadership
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However, Freidheim left the door open for Cyrus to return to the table, saying the firm "would be willing to reinstate our offer if the administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders."
Lets see if they do, you would think twice now if your the administrator. Got to love aviation
expect the unexpected.
Lets see if they do, you would think twice now if your the administrator. Got to love aviation
expect the unexpected.
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With 2 active competitors (I exclude the bond holders for the moment), there was a chance that the airline would come out of administration. With Cyrus pulling out (have they really - or is this designed to put pressure on Deloittes??), Bain could totally re-evaluate their offer in a downward direction on the basis that any offer is better than no offer.
So true - This has got some distance to run before a realistic outcome is known. If Bain end up getting the poisoned chalice, standby for the entry of Carla the Virgin leader. 
......expect the unexpected
Has all the signs of the Tesna bid for Ansett. I wouldn't be surprised if Bain also now pull out due to no Government dollars which these VC 's really want to do spend other people's money while stripping the assets for themselves. I also think Qantas announcement was strategically timed to help kill off any bids. My guess is Virgins best chance is the bondholders bid as they have more skin in the game.
Last edited by mostlytossas; 26th Jun 2020 at 01:09.
I don’t know but my feeling would be this is a tactic to save face because Bain is going to ‘win’ the process? You would think they would have a better line than they won’t return our emails! I’m pretty sure they have people in the Village in the data room. It is like a jilted teenager, if you return my email we can still talk.....I still love you.
Have to admire the few here who think these companies had no idea how bad things were until Qantas said they were bad.
Have to admire the few here who think these companies had no idea how bad things were until Qantas said they were bad.
Cyrus may believe that they are window dressing on a Bain takeover all along. “Lack of engagement” is a very strong criticism when looking at a billion dollar deal. Deloittes partners will also be looking for work from the successful bidder.
‘It is also not impossible that the old girls network is active here.
‘It is also not impossible that the old girls network is active here.
Didnt someone post on here before that supposedly Cyrus was having some "trouble" trying to find the funds? Will be interesting if the bondholders now get a shot at it. $970m and has Singapore government links. What a mess.
From AFR Street talk
Bain Capital wins! Lawyers locked up negotiating final terms
Sarah Thompson, Anthony Macdonald and Tim Boyd
Bain Capital is poised to sign a deal to buy Virgin Australia.
It is understood Bain's lawyers at Herbert Smith Freehills and administrator Deloitte's counsel at Clayton Utz were drafting final terms on Friday morning.
Sources said the two sides were locked up in Clayton Utz's office in Sydney and wouldn't come out until the deal was agreed.
The final negotiations between the parties' lawyers followed round-the-clock talks between Deloitte and Bain.
As Street Talk revealed on Thursday, Bain emerged as the lead contender after Deloitte met both bidders on Tuesday. Binding bids were lobbed on Monday.The deal will be put to Virgin's creditors for approval in August.
It comes after a two-month auction run by Deloitte, which has been advised by Morgan Stanley, Houlihan Lokey and Clayton Utz and was appointed Virgin's administrator in April.Deloitte shortlisted four parties to enter the second round of the auction in mid-May, including financial sponsors Bain and BGH Capital, US aviation firm Indigo Partners and New York-based investor Cyrus Capital Partners.
But when the third round rolled around in early June, it all came down to a battle between Bain and Cyrus.
Cyrus released a statement on Friday morning announcing it had withdrawn its offer to acquire Virgin due to "a lack of engagement by the administrator".
Bain's bid has been led by local managing director Mike Murphy, alongside an engine room of advisers including Goldman Sachs, KordaMentha and Herbert Smith Freehills, as well as former Jetstar boss Jayne Hrdlicka.
The Boston-headquartered firm is expected to finance its proposal from its buyout, credit and special situations funds.
Sarah Thompson, Anthony Macdonald and Tim Boyd
Bain Capital is poised to sign a deal to buy Virgin Australia.
It is understood Bain's lawyers at Herbert Smith Freehills and administrator Deloitte's counsel at Clayton Utz were drafting final terms on Friday morning.
Sources said the two sides were locked up in Clayton Utz's office in Sydney and wouldn't come out until the deal was agreed.
The final negotiations between the parties' lawyers followed round-the-clock talks between Deloitte and Bain.
As Street Talk revealed on Thursday, Bain emerged as the lead contender after Deloitte met both bidders on Tuesday. Binding bids were lobbed on Monday.The deal will be put to Virgin's creditors for approval in August.
It comes after a two-month auction run by Deloitte, which has been advised by Morgan Stanley, Houlihan Lokey and Clayton Utz and was appointed Virgin's administrator in April.Deloitte shortlisted four parties to enter the second round of the auction in mid-May, including financial sponsors Bain and BGH Capital, US aviation firm Indigo Partners and New York-based investor Cyrus Capital Partners.
But when the third round rolled around in early June, it all came down to a battle between Bain and Cyrus.
Cyrus released a statement on Friday morning announcing it had withdrawn its offer to acquire Virgin due to "a lack of engagement by the administrator".
Bain's bid has been led by local managing director Mike Murphy, alongside an engine room of advisers including Goldman Sachs, KordaMentha and Herbert Smith Freehills, as well as former Jetstar boss Jayne Hrdlicka.
The Boston-headquartered firm is expected to finance its proposal from its buyout, credit and special situations funds.