Legal bid to block Virgin Australia takeover rejected by court

Saturday, 17 Aug, 2020 0

Bain Capital’s takeover of Virgin Australia is on track to be completed next month after the Australian Federal Court rejected an injunction by Virgin bondholders.

A group of leading bondholders have been trying to scupper the deal.

They are owed a combined total of about $2 billion but will only see a small fraction of that under the Bain deal.

They wanted to turn that into equity and also pledged to inject about $800 million in new funding.

Virgin went into administration owing about $6.8 billion.

Creditors are set to vote on Bain takeover next month.

The Federal Court ruling did leave open a last chance for the bondholders to submit a competing deal, but it must do so before a vote is taken on the Bain proposal.

Virgin Australia CEO Paul Scurrah has urged staff, who are part of the creditors, to accept the Bain takeover plan.

"I know this has a huge impact on you all personally and is unsettling. I can assure you that Bain Capital remains 100 per cent committed to completing the sale and enabling us to be a fierce competitor for years to come," he said.

Written by Ray Montgomery, Asia Pacific editor

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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