Virgin Australia's unsecured creditors to get 9-13% return under Bain deal - administrator


SYDNEY, Aug 25 (Reuters) - Virgin Australia Holdings Ltd's VAH.AX unsecured creditors will receive an average return of 9-13% of their funds as part of U.S. private equity group Bain Capital's proposed purchase of the airline, administrator Deloitte said in a report on Tuesday.

The unsecured creditors include bondholders owed A$2 billion ($1.43 billion). Priority creditors and employees will receive 100% of funds owed, the report said.

Unsecured bondholders Broad Peak and Tor Investment Management on Friday withdrew plans to propose a rival debt-to-equity recapitalisation deal they said would provide a higher return, leaving the Bain deal as the only real option apart from liquidation.

($1 = 1.3961 Australian dollars)

(Reporting by Jamie Freed; Editing by Himani Sarkar)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.