FILE PHOTOS: Aircraft from Virgin Australia sit on the runway at the Sydney Airport domestic terminal in Australia, 19 August 2018. Photos taken on 19 August 2018. REUTERS / David Gray / Photo File
SYDNEY (Reuters) – Virgin Australia Holdings Ltd (VAH.AX) The administrator said on Tuesday that they had chosen Bain Capital and Cyrus Capital Partners as the final bidder for the country’s second largest airline.
Deloitte’s administrator said they had been selected from five non-binding proposals received on Friday. It is looking for a binding agreement with the winning bidder on June 30.
Others who have submitted proposals include BGH Capital, Indigo Partners and Brookfield Asset Management, Reuters previously reported.
Virgin owed almost A $ 7 billion ($ 4.76 billion) to creditors when it entered voluntary administration in April with a long-term financial struggle compounded by the coronavirus pandemic.
The next phase for the parties on the short list will include further involvement with aircraft stakeholders and financiers as they seek agreement on future requirements before binding offers are accepted, Deloitte said.
Strong interest in Virgin at a time when the world aviation market is based largely shows the long-standing appeal of the Australian domestic market, a duopoly between Qantas Airways Ltd. (QAN.AX) and Virgin.
Bain, who owns Trans Maldivian Airways, was advised of its Virgin offer by Jayne Hrdlicka, former head of the Qantas low-cost airline, Jetstar.
Cyrus was an investor in Virgin America with Virgin Richard Branson founder before being sold to Alaska Airlines. Cyrus also invested in the British airline Flybe which was destroyed with Virgin Atlantic.
($ 1 = 1.4712 Australian dollars)
Reporting by Jamie Freed, Scott Murdoch and Paulina Duran; Editing by Kim Coghill
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