Legal bid to block Virgin Australia takeover rejected by court
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
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.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026