The administrators of Virgin Australia Holdings (VAH) have announced that the airline group has entered into a contract of sale with US equity firm Bain Capital.
The sale and implementation deed involving VAH and its subsidiaries is subject to regulatory approval, with a report detailing the handover expected before the end of August.
An estimate on a return to creditors will be provided ahead of the second meeting of creditors, but no return to shareholders is expected.
The other remaining bidder for VAH Group, Cyrus Capital, withdrew its offer.
Earlier this month, it was reported that if successful in its bid, Bain would offer “a slimmed down, lower cost, domestic-focused carrier”.
RMIT University School of Management Senior Lecturer Warren Staples said the outlook for the Brisbane-based carrier looks bleak, whomever its new owner.
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