As the search for Virgin Australia’s new owner nears completion, a group has thrown a spanner in the works by proposing the sale not go ahead and the airline be re-listed.
Hoping to recoup some of their roughly $2 billion investment, VA bondholders have put forth an advanced recapitalisation proposal to the airline's administrator Deloitte, the Australian Financial Review reported.
The proposal was received early Wednesday morning after a day scrutinising remaining bidders Bain Capital and Cyrus Capital Partners.
According to AFR’s Street Talk, the bondholders apparently want to re-capitalise and re-list the carrier on the ASX, with funding worth $1.4 billion.
By doing so, bondholders would become shareholders in VA and stop a sale they say is coming at the wrong time.
The plan would also see bondholders inject $1 billion in new funds into the airline to help bolster the carrier post-COVID-19 and make it “battle-ready” for a possible second-wave pandemic.
The bondholders are a mix of Australian and foreign institutional investors, and Aussie retail investors.
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