Virgin Australia Bondholders Working On Potential Revival Plan

Virgin Australia Holdings Ltd bondholders are working on a revival plan for the airline involving a debt-to-equity swap if they are not satisfied with a sale offer, according to a person with knowledge of the matter, Reuters reported. Binding bids from finalists Bain Capital and Cyrus Capital Partners were due on Monday for Australia’s second-biggest airline, which entered voluntary administration in April and owes nearly A$7 billion to creditors. The airline owes about A$2 billion total to 6,500 unsecured bondholders, the second-most numerous creditor group behind employees that will vote on a deal at a meeting in August. The bondholders are preparing the backup plan to help avoid liquidation if the administrator’s preferred offer is not acceptable, the person with knowledge of the matter told Reuters on condition of anonymity. Read more