20 buyers now circling Virgin Australia
Join Date: Oct 2016
Location: Most locked down city in the world
Posts: 546
Likes: 0
Received 0 Likes
on
0 Posts
https://www.afr.com/street-talk/dela...0200804-p55ibq
Deloitte's Vaughan Strawbridge and his team have had control of Virgin Australia and its sale since April. Louise Kennerley
Street Talk can reveal Deloitte asked Virgin's Creditors Committee of Inspection, the formal creditor representative group, to push the second creditors meeting back one week to September 4 and give it more time to prepare the pre-meeting reports.
According to a confidential document seen by this column, Deloitte argued the delay would also give creditors more time to consider information ahead of their vote on the administrator recommended recapitalisation proposal lobbed by Bain Capital.
It also said delaying the meeting now meant it was less likely creditors would vote to adjourn the meeting at a later date, to give them more time to work through the deal materials.
It is understood creditors accepted the delay - and were told to expect Deloitte's detailed report on August 25, ahead of the vote on September 4.
While Bain works through the paperwork, it would be keeping one eye on COVID-19 numbers and associated restrictions, which have curbed domestic and offshore travel and grounded most of Virgin's fleet. The sooner the travel market re-opens, the more likely Virgin could prove a shrewd investment for Bain.
Deloitte's Vaughan Strawbridge and his team have had control of Virgin Australia and its sale since April. Louise KennerleyStreet Talk can reveal Deloitte asked Virgin's Creditors Committee of Inspection, the formal creditor representative group, to push the second creditors meeting back one week to September 4 and give it more time to prepare the pre-meeting reports.
According to a confidential document seen by this column, Deloitte argued the delay would also give creditors more time to consider information ahead of their vote on the administrator recommended recapitalisation proposal lobbed by Bain Capital.
It also said delaying the meeting now meant it was less likely creditors would vote to adjourn the meeting at a later date, to give them more time to work through the deal materials.
It is understood creditors accepted the delay - and were told to expect Deloitte's detailed report on August 25, ahead of the vote on September 4.
Deloitte said the delay would also allow more time to negotiate key contracts as part of the restructure, give bondholder groups more time to consider their options, and give the administrator more time to prepare the comprehensive and complex report.
It comes as Bain - with the help of its advisers including KordaMentha, Goldman Sachs and Herbert Smith Freehills - prepare the proposed Deed of Company Arrangement, which is the formal legal document that would be put to Virgin creditors for their approval. The DOCA was due to be finalised in the coming week.While Bain works through the paperwork, it would be keeping one eye on COVID-19 numbers and associated restrictions, which have curbed domestic and offshore travel and grounded most of Virgin's fleet. The sooner the travel market re-opens, the more likely Virgin could prove a shrewd investment for Bain.
I have a very bad feeling about “the deal”. My main concern now is that the Taxpayer and the general public don’t get rooted. I’m sorry for the staff.
One mystery is revealed; Goldman Sachs (aka the vampire squid) is working with Bain. That tells you where the money is from.
What I suspect has happened is that Deloittes have realised that the agreement they signed with Bain had barbed hooks all over it. They can’t back out. Bain gets to double its money even if the deal falls through (at deloittes and the creditors expense). Deloittes needs the extra time to see if they can somehow save themselves from this disaster or dress up this turd sandwich for the creditors.
I say again “what is Bains exit strategy?” no VC goes into a deal without having that decided because that’s the first question the Bain CEO asks: “how are we going to. get paid?”.
‘’The answer to that question may be rather unpleasant.
One mystery is revealed; Goldman Sachs (aka the vampire squid) is working with Bain. That tells you where the money is from.
What I suspect has happened is that Deloittes have realised that the agreement they signed with Bain had barbed hooks all over it. They can’t back out. Bain gets to double its money even if the deal falls through (at deloittes and the creditors expense). Deloittes needs the extra time to see if they can somehow save themselves from this disaster or dress up this turd sandwich for the creditors.
I say again “what is Bains exit strategy?” no VC goes into a deal without having that decided because that’s the first question the Bain CEO asks: “how are we going to. get paid?”.
‘’The answer to that question may be rather unpleasant.
Join Date: Feb 2007
Location: moree caravan park
Posts: 77
Likes: 0
Received 0 Likes
on
0 Posts
Sunfish, you’re a pest. I realise you were once 2IC in a paperclip factory so you’re now an oracle on business, but don’t come onto a pilot’s forum and say you’re concerned about taxpayers when a few hundred or thousand pilots are about to be taken out the back and shot.
Try to have just a tiny bit of human emotion.
Try to have just a tiny bit of human emotion.
Join Date: Jul 2007
Location: BAO
Posts: 0
Likes: 0
Received 0 Likes
on
0 Posts
ex ASX: ASX RELEASE Virgin Australia Holdings.......
ASX Link here: https://www.asx.com.au/asxpdf/202008...hmj7fsgdg4.pdf
Extract:
rgds
S28- BE
Extract:
VIRGIN AUSTRALIA GROUP ANNOUNCES PLAN TO FOCUS ON CORE STRENGTHS, RE-ESTABLISHING ITSELF AS AN ICONIC AUSTRALIAN AIRLINE
Key points:
•Plan for a stronger, more profitable and competitive Virgin Australia coming out of voluntary administration
•Focus on delivering exceptional experiences at great value with Virgin Australia’s core domestic and short-haul international business
•Virgin Australia to provide customers with the value of travel credits post administration with validity dates extended for bookings made prior to administration
•Resetting Virgin Australia to meet lower global and Australian demand, including:
o Reduction in cost base to meet sector uncertainty and COVID-19 market conditions
o Securing approximately 6,000 jobs when the market recovers with 3,000 roles impacted
o Simplified all-Boeing 737 mainline fleet and the retention of the regional and charter fleet, but removing ATR, Boeing 777, Airbus A330 and Tigerair Airbus A320 aircraft types
o Long-haul international flying important part of plan but suspended until global travel market recovers
o Tigerair Australia brand discontinued with Air Operator Certificate (AOC) and necessary support maintained to provide option for ultra-low-cost operations when market recovers
o Continued commitment to regional and charter flying.
5 August 2020: The Virgin Australia Group (ASX: VAH) has announced a plan for a stronger, more profitable and competitive business, building on its unique culture and securing approximately 6,000 jobs as it prepares to exit voluntary administration under the ownership of Bain Capital.............
Key points:
•Plan for a stronger, more profitable and competitive Virgin Australia coming out of voluntary administration
•Focus on delivering exceptional experiences at great value with Virgin Australia’s core domestic and short-haul international business
•Virgin Australia to provide customers with the value of travel credits post administration with validity dates extended for bookings made prior to administration
•Resetting Virgin Australia to meet lower global and Australian demand, including:
o Reduction in cost base to meet sector uncertainty and COVID-19 market conditions
o Securing approximately 6,000 jobs when the market recovers with 3,000 roles impacted
o Simplified all-Boeing 737 mainline fleet and the retention of the regional and charter fleet, but removing ATR, Boeing 777, Airbus A330 and Tigerair Airbus A320 aircraft types
o Long-haul international flying important part of plan but suspended until global travel market recovers
o Tigerair Australia brand discontinued with Air Operator Certificate (AOC) and necessary support maintained to provide option for ultra-low-cost operations when market recovers
o Continued commitment to regional and charter flying.
5 August 2020: The Virgin Australia Group (ASX: VAH) has announced a plan for a stronger, more profitable and competitive business, building on its unique culture and securing approximately 6,000 jobs as it prepares to exit voluntary administration under the ownership of Bain Capital.............
S28- BE
Good luck with that. Of course I feel for the staff.
Socks and thongs, do you have any sympathy for the creditors? Didn’t think so........
‘Any idea of the brutal machinations that underpin the beautiful statement to the ASX? Probably not....
Socks and thongs, do you have any sympathy for the creditors? Didn’t think so........
‘Any idea of the brutal machinations that underpin the beautiful statement to the ASX? Probably not....
Evertonian
Tigerair Australia brand discontinued with Air Operator Certificate (AOC) and necessary support maintained to provide option for ultra-low-cost operations when market recovers
Evertonian
What does any of it mean? There is nothing in there that hasn't been in general circulation for the past 4 months anyway. All it does is give the staff further anxieties about what their future looks like. Where do the wide body pilots think they fit into all this? It would be an optimistic person that thinks that a surplus of 737 pilots are simply going to make way for 777 and A330 pilots who have to be retrained. It still reminds me of the 2 class low cost model that was spruiked by Lew and Fox supported by Korda-Mentha. Basically Bain thinks they will be attracting some customers from the premium end of the market and some customers from the low cost end. Weren't Bain going to ditch the lounges and the frills? Good luck to the staff but all I can recommend is don't hold on too tight to the memories of the airline you once worked for.
Goldman Sachs involvement in the Bain bid has been public knowledge since late May - https://www.afr.com/street-talk/bain...0200524-p54vz9
Lookleft, B777 and A330 pilots cannot displace 737 crew. That is explicitly stated in the relevant EBAs. The only question is, if 737 crew are made redundant as well, in what order are the crew reemployed. The EBAs state that a redundant pilot maintains their seniority for 5 years from the date of redundancy, so in that scenario a WB pilot could be rehired on to the 737 ahead of a redundant 737 pilot. But that’s for the Unions to negotiate with the Company I guess.
Join Date: Apr 2010
Location: Asia
Posts: 1,030
Likes: 0
Received 0 Likes
on
0 Posts
I don’t think there will be much re hiring until the back half of the decade.
So has there been any internal comms? Is it as simple as if your an 330, 777, ATR pilot your made redundant Pilots/cabin/engineers?
So has there been any internal comms? Is it as simple as if your an 330, 777, ATR pilot your made redundant Pilots/cabin/engineers?
Bain will go the cheapest way which will be to employ VA Mark 1 737 Endorsed and current pilots,part-time.No retraining needed and flying will increase as demand increases.
Part time is in the EA, but in a more normal World it would be in the form of an application by the pilot and subject to the approval of the company.
It may now be a way to keep as many pilots employed as possible while having the ability to draw on a greater pool of current drivers when the demand requires. Frankly given the circumstances, I would grab it and pray this whole thing comes off?
It may now be a way to keep as many pilots employed as possible while having the ability to draw on a greater pool of current drivers when the demand requires. Frankly given the circumstances, I would grab it and pray this whole thing comes off?
Join Date: Jul 2007
Location: BAO
Posts: 0
Likes: 0
Received 0 Likes
on
0 Posts
That is out there......, no doubt about it.
Link in case anybody wants to read/experience it, for themselves: https://www.news.com.au/travel/trave...0109ba3f155781
rgds all
S28- BE
Link in case anybody wants to read/experience it, for themselves: https://www.news.com.au/travel/trave...0109ba3f155781
rgds all
S28- BE