Virgin battle heating up

FIVE former Virgin Blue airline executives were this morning revealed as the “specialist industry advisors” supporting the rival bid for Virgin Australia by the airline’s bondholders (TD 06 Jul).

The group is led by former Virgin Blue co-founder Rob Sherrard alongside founding executive Bruce Highfield, and the team also includes former CFO Manny Gill, former GM of Network Operations Andrew Lillyman and the airline’s GM of Public Affairs, Heather Jeffery.

Documents were filed in the NSW Federal Court yesterday by significant bondholders Broad Peak Investment Advisors and Tor Investments, seeking orders that would allow them to access information so they can finalise their proposal as an alternative to the current planned sale of the carrier to Bain Capital (TD 26 Jun).

They aim to provide a Deed of Company Arrangement which can be voted on at the formal second meeting of creditors, which is currently scheduled for 04 Sep.

“In simple terms we are the proud investors and supporters of Virgin Australia and its people,” Sherrard said.

“We believe in the airline, firmly support the vision of management and are confident that Virgin can return to being a successful airline.”

The bondholder group comprises about 6,000 retail investors and more than 30 institutions who are collectively owed about $2 billion - and who under the current Bain deal are believed to be unlikely to recoup their investments.

“Under our plan Virgin Australia would remain a majority Australian owned public company, listed on the ASX as opposed to the asset of a privately owned investment company based in the USA.

“We firmly believe our Founders and Bondholders proposal will result in the best return for all creditors and employees,” Sherrard added.

He said the group was keen to engage with employees on its proposal, which has not been possible under the current terms of the VA administration.