Virgin Australia Administrators Halt Bondholder Payments, Appoint Morgan Stanley for Sale

Virgin Australia Holdings Ltd’s administrators have halted payments to bondholders and appointed Morgan Stanley to help sell the airline within four months, said a participant in a meeting of creditors owed nearly A$7 billion ($4.58 billion), Reuters reported. Administrators from Deloitte Australia were appointed this month to restructure and sell Virgin, making it the Asia-Pacific airline industry’s biggest victim of the coronavirus crisis. The administrators this week issued an information memorandum and opened a data room for interested parties that had signed non-disclosure agreements, administrator Vaughan Strawbridge said at the meeting on Thursday, a creditor told Reuters. Strawbridge said the airline expected high-quality bids, but he did not name the parties, according to the creditor, who declined to be named for fear of breaching confidentiality. A Deloitte spokesman did not immediately respond to a request for comment. Read more

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