20 buyers now circling Virgin Australia
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marketing experts, people who had worked on other types of airlines, leasing experts, people who focus on human resources,
They must be talking about Korda & Mentha and JH. People who focus on human resources. Got to say that again.
They must be talking about Korda & Mentha and JH. People who focus on human resources. Got to say that again.
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....And the ****fight continues:
https://www.smh.com.au/business/comp...09-p55am8.html
https://www.afr.com/companies/transp...0200709-p55amb
https://www.smh.com.au/business/comp...09-p55am8.html
https://www.afr.com/companies/transp...0200709-p55amb
There's supposed to be a process where creditors have a say in the matter, Deloittes say "yeah there is but we're going to say we have to circumvent that so we will and sign up/off with Bain". Trust us!
"Oh and there's no money so we have to sign up/off with Bain or will be the end of any chance (except liquidation) so creditors HAVE to f*ck off". Trust us!
Others seem to think there IS money to keep the process going. Trust them?
They seem to be from Singapore - so they'd be switched on to the Oz aviation scene as past experience indicates...right?
This circus ain't leaving town any time soon - IMHO.
More popcorn required.
Last edited by galdian; 9th Jul 2020 at 11:52. Reason: clarity
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ex Mr 'Blackout's post- for those that are interested/would like... the AFR article..
It has been mentioned prior, 'that' an extract would be appreciated by 'some' of you.... Without, wanting to interfere with Mr 'Blackout' and his post.
Referenced Article link here: https://www.afr.com/companies/transp...0200709-p55amb
An extract here:
Rgds all
S28- BE
Referenced Article link here: https://www.afr.com/companies/transp...0200709-p55amb
An extract here:
Virgin bondholders warned they jeopardise airline's future
Virgin bondholders warned they jeopardise airline's future
Lucas Baird Reporter Jul 9, 2020 – 5.05pm
Virgin Australia's administrators from Deloitte have launched a broadside against bondholders and have warned they are jeopardising the future of the airline through their efforts to disrupt the sale.
The bondholders at the centre of the dispute are Broad Peak Investment Advisers, which has close links to Singapore's sovereign wealth fund Temasek, and the Hong Kong-based Tor Investment Management.
The pair, which hold about $300 million of Virgin's unsecured bonds, have applied for a rare Takeovers Panel intervention into the administration process and access to confidential sale documents over the past week.
Broad Peak and Tor, which are the flagbearers for the wider bondholder group advised by financial services outfit Faraday and lawyers from Corrs Chambers Westgarth, want their alternative recapitalisation proposal put to a vote by the 12,000 or so creditors still owed about $6.8 billion by Virgin.
But according to submissions they filed to the Federal Court on Thursday afternoon, the pair have faced cautions that their actions could derail the entire administration.
"The Respondents [Deloitte] and Bain have submitted to the Takeovers Panel that the effect of this limited relief would be to precipitate the liquidation of VAH by undoing or delaying the implementation of the terms of the SID [sale and implementation deed]," the document says.
The panel – a national forum for resolving disputes related to corporate acquisitions – was the first route through which Broad Peak and Tor sought relief.
On Monday, they applied for orders from the forum that would force Deloitte to disclose the terms of the sale to Bain and enable creditors to vote on the bondholder proposal.
The Takeovers Panel has yet to determine whether it will conduct proceedings on this matter.
And just two days later, Broad Peak and Tor applied to unlock the details of the sale – such as how much Bain paid and the expected return to creditors – which remain secret on orders from the Federal Court.
Virgin's administrators attacked these actions in their response to these submissions, telling the court that the bondholder's application should be thrown out with costs for several reasons.
"To the extent that the applicants [the bondholders] are disappointed bidders or participants in the competitive sales process it would be unorthodox and highly prejudicial to provide them with the Confidential Material," the administrators said referring to the failed bondholder bid.
"The Proposed Extension Orders and the Proposed Disclosure Orders will cause disruption to, and potentially jeopardise, the orderly sale process that has been implemented by the administrators."
"Those submissions are unconnected with the nature of the relief sought or the consequences of an alternative proposal being put to the second meeting of creditors," Broad Peak and Tor's submission said.
This meeting, which will take place in mid-August, is where creditors traditionally vote on the outcome of the administration – whether to liquidate or sell to a preferred bidder.
Yet, what precisely Virgin's creditors will vote on at their meeting is unclear given Deloitte has already signed away the airline to Bain.
Bain remains in conversations with the Virgin management team on what the reincarnated airline will resemble; however, it will likely be a heavily slimmed-down version with up to 5000 staff facing the axe.
Virgin's administrators have said they picked this option because it provided the most certainty for the business going forward.
Still, the bondholders – of which there are nearly 6000 owed close to $2 billion – expressed their disappointment with it when announced late last month.
The bondholder group's proposal for the airline would see their unsecured debt converted to equity, about $1 billion pumped into the airline and relist Virgin on the securities exchange.
Virgin Australia fell into administration in April, unable to weather the harsh initial toll of the COVID-19 pandemic. The outbreak has crushed travel demand and global aviation since early February.
Even Qantas, one of the best-resourced airlines in the world, has sacked 6000 workers and pulled the trigger on a $1.9 billion capital raising to help it through what it expects will be three years of reduced demand.
Virgin Australia's administrators from Deloitte have launched a broadside against bondholders and have warned they are jeopardising the future of the airline through their efforts to disrupt the sale.
The bondholders at the centre of the dispute are Broad Peak Investment Advisers, which has close links to Singapore's sovereign wealth fund Temasek, and the Hong Kong-based Tor Investment Management.
The pair, which hold about $300 million of Virgin's unsecured bonds, have applied for a rare Takeovers Panel intervention into the administration process and access to confidential sale documents over the past week.
Broad Peak and Tor, which are the flagbearers for the wider bondholder group advised by financial services outfit Faraday and lawyers from Corrs Chambers Westgarth, want their alternative recapitalisation proposal put to a vote by the 12,000 or so creditors still owed about $6.8 billion by Virgin.
But according to submissions they filed to the Federal Court on Thursday afternoon, the pair have faced cautions that their actions could derail the entire administration.
"The Respondents [Deloitte] and Bain have submitted to the Takeovers Panel that the effect of this limited relief would be to precipitate the liquidation of VAH by undoing or delaying the implementation of the terms of the SID [sale and implementation deed]," the document says.
The panel – a national forum for resolving disputes related to corporate acquisitions – was the first route through which Broad Peak and Tor sought relief.
On Monday, they applied for orders from the forum that would force Deloitte to disclose the terms of the sale to Bain and enable creditors to vote on the bondholder proposal.
The Takeovers Panel has yet to determine whether it will conduct proceedings on this matter.
And just two days later, Broad Peak and Tor applied to unlock the details of the sale – such as how much Bain paid and the expected return to creditors – which remain secret on orders from the Federal Court.
Virgin's administrators attacked these actions in their response to these submissions, telling the court that the bondholder's application should be thrown out with costs for several reasons.
"To the extent that the applicants [the bondholders] are disappointed bidders or participants in the competitive sales process it would be unorthodox and highly prejudicial to provide them with the Confidential Material," the administrators said referring to the failed bondholder bid.
"The Proposed Extension Orders and the Proposed Disclosure Orders will cause disruption to, and potentially jeopardise, the orderly sale process that has been implemented by the administrators."
No basis for warning, bondholders say
In their earlier court filings, Broad Peak and Tor said there was no basis for the warning from Deloitte and Bain that the sale may fall over."Those submissions are unconnected with the nature of the relief sought or the consequences of an alternative proposal being put to the second meeting of creditors," Broad Peak and Tor's submission said.
This meeting, which will take place in mid-August, is where creditors traditionally vote on the outcome of the administration – whether to liquidate or sell to a preferred bidder.
Yet, what precisely Virgin's creditors will vote on at their meeting is unclear given Deloitte has already signed away the airline to Bain.
Bain remains in conversations with the Virgin management team on what the reincarnated airline will resemble; however, it will likely be a heavily slimmed-down version with up to 5000 staff facing the axe.
Virgin's administrators have said they picked this option because it provided the most certainty for the business going forward.
Still, the bondholders – of which there are nearly 6000 owed close to $2 billion – expressed their disappointment with it when announced late last month.
The bondholder group's proposal for the airline would see their unsecured debt converted to equity, about $1 billion pumped into the airline and relist Virgin on the securities exchange.
Virgin Australia fell into administration in April, unable to weather the harsh initial toll of the COVID-19 pandemic. The outbreak has crushed travel demand and global aviation since early February.
Even Qantas, one of the best-resourced airlines in the world, has sacked 6000 workers and pulled the trigger on a $1.9 billion capital raising to help it through what it expects will be three years of reduced demand.
S28- BE
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And the latest, "Virgin's bondholders have revealed they are planning to launch a last-gasp bid to take the failed airline off its intended new owners at Bain Capital by asking creditors to the failed airline to vote on an alternative proposal at an upcoming meeting in August."
https://www.smh.com.au/business/comp...10-p55auo.html
Deloitte really seems to have fumbled this, first it ghosted Cyrus according to reports and always had Bain lined up, and now it faces this bondholder revolt.
https://www.smh.com.au/business/comp...10-p55auo.html
Deloitte really seems to have fumbled this, first it ghosted Cyrus according to reports and always had Bain lined up, and now it faces this bondholder revolt.
I think you will find Deloitte have played the game well and picked the best candidate (deepest pockets). If it is going to work who knows but there seems to be some daydream out there Cyrus were going to keep everyone’s job, give them pay rises, expand the fleet and give everyone a unicorn and leather wallet for Christmas. That ain’t their track record.
As for the bond holders, do you really think people dumb enough to buy junk bonds should be running an airline?
As for the bond holders, do you really think people dumb enough to buy junk bonds should be running an airline?
I think you will find Deloitte have played the game well and picked the best candidate (deepest pockets). If it is going to work who knows but there seems to be some daydream out there Cyrus were going to keep everyone’s job, give them pay rises, expand the fleet and give everyone a unicorn and leather wallet for Christmas. That ain’t their track record.
As for the bond holders, do you really think people dumb enough to buy junk bonds should be running an airline?
As for the bond holders, do you really think people dumb enough to buy junk bonds should be running an airline?
Do you think people who've loaned $2Bn to this sham of a company are simply going to retreat without a fight. Looks like the Bain deal has been it from the get-go!
Dear Blackout
If calling people dumb for buying junk bonds is derogatory you had best go back and revisit some of your previous posts as I just did and fix those windows in your glass house!
If calling people dumb for buying junk bonds is derogatory you had best go back and revisit some of your previous posts as I just did and fix those windows in your glass house!
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https://www.smh.com.au/business/comp...10-p55auo.html
Interesting comments from Judge Middleton. I'd imagine that two DOCA's will be served up to the creditors in August. Proper process I would think. Someone will hopefully be accepted and let the process begin. Good luck all...
Interesting comments from Judge Middleton. I'd imagine that two DOCA's will be served up to the creditors in August. Proper process I would think. Someone will hopefully be accepted and let the process begin. Good luck all...
https://in.news.yahoo.com/virgin-aus...013932115.html
SYDNEY (Reuters) - Virgin Australia Holdings Ltd <VAH.AX> bondholders plan to propose to creditors a debt-to-equity swap as an alternative deal to the purchase by Bain Capital agreed by the company's administrator, a lawyer for the bondholders said on Friday.
Singapore's Broad Peak Investment Advisers and Hong Kong's Tor Investment Management plan to put forward an alternative deed of company arrangement (DOCA) to a vote at a creditor's meeting next month, the lawyer Ian Jackman said.
"The administrators will no doubt put forward a DOCA that represents the Bain transaction at the second meeting of creditors," he said at a court hearing.
"We for our part will have an alternative DOCA ... with a view to improving the return of creditors as well as ensuring the future viability of the company."
Broad Peak and Tor hold around A$300 million (£165.21 million) of Virgin's A$2 billion of unsecured bonds, according to a court submission published on Thursday.
Their proposal involves interim funding to allow Virgin to continue operating, the conversion of noteholders and certain other unsecured creditors' debts into equity worth around 69 cents on the dollar with an option for creditors to sell their shares for cash, the submission said.
There is a 100 cents on the dollar return for certain essential and ongoing creditors, it added.
The terms of Bain's deal agreed with the administrator Deloitte have not been disclosed publicly.
The bondholders have sought access to more details on the terms of the Bain deal to help them prepare their rival proposal ahead of the creditor's meeting next month, Jackman said.
"The question of disclosure is really one of timing not of content," he said. "We are not seeking disclosure to the public at large."
However, at the end of a court hearing on granting access to confidential Bain deal terms, judge John Middleton said he planned to release orders early next week that would not give bondholders access to the details.
Singapore's Broad Peak Investment Advisers and Hong Kong's Tor Investment Management plan to put forward an alternative deed of company arrangement (DOCA) to a vote at a creditor's meeting next month, the lawyer Ian Jackman said.
"The administrators will no doubt put forward a DOCA that represents the Bain transaction at the second meeting of creditors," he said at a court hearing.
"We for our part will have an alternative DOCA ... with a view to improving the return of creditors as well as ensuring the future viability of the company."
Broad Peak and Tor hold around A$300 million (£165.21 million) of Virgin's A$2 billion of unsecured bonds, according to a court submission published on Thursday.
Their proposal involves interim funding to allow Virgin to continue operating, the conversion of noteholders and certain other unsecured creditors' debts into equity worth around 69 cents on the dollar with an option for creditors to sell their shares for cash, the submission said.
There is a 100 cents on the dollar return for certain essential and ongoing creditors, it added.
The terms of Bain's deal agreed with the administrator Deloitte have not been disclosed publicly.
The bondholders have sought access to more details on the terms of the Bain deal to help them prepare their rival proposal ahead of the creditor's meeting next month, Jackman said.
"The question of disclosure is really one of timing not of content," he said. "We are not seeking disclosure to the public at large."
However, at the end of a court hearing on granting access to confidential Bain deal terms, judge John Middleton said he planned to release orders early next week that would not give bondholders access to the details.