Vir­gin Aus­tralia cred­i­tors fail in le­gal bid to force vote on al­ter­na­tive res­cue plan

The Daily Telegraph - Business - - Business -

◆ Bond­hold­ers seek­ing to de­rail the takeover of Vir­gin Aus­tralia by US pri­vate eq­uity gi­ant Bain Cap­i­tal have had their re­quest to put an al­ter­na­tive res­cue plan to cred­i­tors re­jected by a Syd­ney court, writes Si­mon Foy.

Yes­ter­day’s rul­ing did not block any al­ter­na­tive pro­posal be­ing cir­cu­lated to cred­i­tors ahead of a meet­ing on Sept 4. How­ever, it threw out a spe­cific re­quest to force Deloitte, the air­line’s ad­min­is­tra­tor, to hold a vote on two sep­a­rate pro­pos­als.

Bain’s takeover has faced grow­ing le­gal op­po­si­tion in re­cent weeks as a group of bond­hold­ers in­clud­ing UBS, Deutsche Bank and oth­ers try to block the move and sal­vage some of their in­vest­ment. The group holds A$800m (£438m) of the air­line’s debt.

Vir­gin Aus­tralia, founded by Sir Richard Bran­son, col­lapsed in April owing A$6.8bn, which led Deloitte to fast-track a sale to Bain be­fore the air­line ran out of cash. About 1,000 staff were made re­dun­dant in April while 8,000 oth­ers were fur­loughed, leav­ing just 1,000 still work­ing.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.