Virgin Australia’s administrator Deloitte has defended its fire sale of the airline to Bain Capital, saying doing so avoided the company being liquidated, as bondholders step up their own efforts to take control of the company.
One of Virgin’s largest bondholders, Broad Peak Investment, lodged an interlocutory process in the Federal Court on Tuesday seeking access to the secret sale agreement signed on June 26 between Deloitte and Bain.
Bain and Deloitte have refused to say how much the private equity firm will pay Virgin’s creditors, which are owed a combined $6.8 billion, or how many of Virgin’s 9000 workers will lose their jobs.
Broad Peak, a Singaporean hedge fund, was part of a group of bondholders that proposed swapping their $2 billion in debts for ownership of Virgin. Deloitte passed over the proposal and a rival bid from Cyrus Capital in favour of Bain.