US private equity company Bain Capital has won creditors’ approval for the purchase of airline Virgin Australia.
In April, Virgin Australia Group’s board of directors appointed Deloitte’s Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes as voluntary administrators.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
On 26 June, the administrators signed a binding agreement for the sale of the business to Bain Capital. The sale was to occur by the execution of deeds of company arrangement (DOCAs) and shares transfer of Virgin Australia Holdings (VAH) to Bain Capital.
The binding agreement also said the sale can occur by asset sale agreement, involving the business and assets transfer into a new corporate structure and placing the existing companies into liquidation.
The administrators have now confirmed that creditors accepted ten DOCAs. These cover all 41 of the entities in voluntary administration.
The signing and completion of the DOCAs will take place within 15 business days from 4 September.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOnce signed, an application will be submitted for shares transfer of VAH to Bain Capital.
The transfer is subjected to approval by the Federal Court and is expected to be completed by 31 October.
The deal provides unsecured creditors with a return between $0.13 and $0.09 on their claims.
It will support continued employment for most of the employees, as well as retention of aircraft and equipment.
Strawbridge said: “While the outcome of the meeting today is a significant milestone for both the future of Virgin Australia and Australia’s aviation industry more broadly, we also acknowledge those loyal Virgin Australia Group employees who will lose their jobs and the difficulties that this will cause them and their families, as well as the numerous suppliers and investors who will not receive all of the monies owed to them.”
