Bain Capital To Purchase Virgin Australia Airlines

Bain Capital To Purchase Virgin Australia Airlines

On Friday, the creditors of Virgin Australia airlines gave a green signal to the Bain Capital, the US private equity group to stake a claim on the company by voting in favour of the purchase.

Virgin Australia Holdings Limited is the second biggest airline in the country. The agreement will allow it to rise from the voluntary administration that it had entered owing 5 billion USD (A$7 billion) to creditors after plunging to heavy losses following COVID-19 pandemic.

The unsecured creditors would get a massive return between 9% to 13% on their investments from Bain Capital after the deal. Besides, there’s an involvement of financial commitment (A$3.5 billion) as per reported by Deloitte, the administrator. It said that the shares of Virgin should be transferred by 31st October to the private equity group.

Managing director of the Bain Capital Mike Murphy displayed his pleasure, saying it was an important milestone for the recovery of the airline. Meanwhile, the Bain is planning to cut one-third of the workforce of the airline.

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