Virgin Australia Financially Secure? [Now in Voluntary Administration]

[oz_mark]

I think the shareholders capital is totally lost.

Owners are often the first to go, it's the risk they took.
Now for a new infusion of capital.

 

[antycbr]

Owners are often the first to go, it's the risk they took.
Now for a new infusion of capital.

The bond holders will also be well and truly stiffed as well.

 

[dajop]

There’s a rising sentiment domestically against PRC control of infrastructure and companies more generally, especially after the comments of the PRC ambassador. If the gov has a chance of avoiding that they will be very happy.

Who knows. But in the context of Australia/China relations, trade and investmentVA is pretty inconsequential.

Despite the rising anti PRC sentiment, VA is not an essential piece of infrastructure, and if they come up with the best bid for the administrators to accept, then I can’t see the government saying no. If it were QF it would be a different matter.

Whist there is some anti PRC sentiment, it’s probably harder for the government to sell the rejection of a proposal that could save 10,000 jobs.

 

[HS-TQE]

As you probably know, VA1 was almost majority owned by Hainan air, I can say that airline is in serious trouble financially before COVID 19

Hainan Group aka HNA (where Hainan Airlines is a subsidiary of) only owned 20% of VA.

 

[jakeseven7]

this time maybe Monday we will find out a bit more. I still think team Aust super and BGH
will be the best pick of the bunch

Aust Super involvement will see a much more profit driven conservative agenda
based on their investment profile so kiss goodbye to VAi2 I suspect if they won out. They will concentrate on VAd2.

 

[jakeseven7]

Whist there is some anti PRC sentiment, it’s probably harder for the government to sell the rejection of a proposal that could save 10,000 jobs.

Believe it’s actually more like 8000 now after the redundancies.

And I’d bet whoever takes VA2 on will probably lop another few thousand off (minimum) that number as well unfortunately.

 

[Doctore1003]

More from the AFR:

Virgin Australia's auction will move into the second round with four shortlisted bidders on Monday morning.

It is understood administrator Deloitte was finalising the shortlist on Sunday night, and encouraging some of the interested parties that had put forward debt-based proposals to link up with the four shortlisted bidders.

There were believed to be five bidders competing for the four shortlisted spots on Sunday night. The parties included private equity firms BGH Capital, Bain Capital and Brookfield, and American aviation investor Indigo Partners.

Street Talk can also reveal there was a surprise entrant, European firm Cyrus Capital Partners, which was previously invested alongside Richard Branson in Virgin Atlantic.

http://www.afr.com/street-talk/deloitte-whittles-virgin-bidders-down-to-four-20200517-p54tov

 

[HS-TQE]

Believe it’s actually more like 8000 now after the redundancies.

And I’d bet whoever takes VA2 on will probably lop another few thousand off (minimum) that number as well unfortunately.

Looks like the American LCC comglomerate Indigo is also still in with the chance, which in that case if they got the nod. It'll be goodbye Velocity and Lounges as well as VAi, Tiger and potentially VARA (Skywest) with the FIFO Fokkers.

 

[jakeseven7]

Looks like the American LCC comglomerate Indigo is also still in with the chance, which in that case if they got the nod. It'll be goodbye Velocity and Lounges as well as VAi, Tiger and potentially VARA (Skywest) with the FIFO Fokkers.

Maybe the thread members contributing here should pick a winner for us all here and we can ping it to our AFF consultant friend who fed us all the intel in the early days! Make it happen

Close to last on AFF’s list I’m sure will be Indigo...

 

[The-Aviator]

Seems a foregone conclusion in this discussion (and elsewhere too) that if Indigo takes over then Virgin will be converted into a budget carrier. Is that so certain? If they feel that the Australian market is different to other markets they operate in and can support something in between a full service and budget carrier, the niche Virgin fills today, why change it?

 

[dajop]

Seems a foregone conclusion in this discussion (and elsewhere too) that if Indigo takes over then Virgin will be converted into a budget carrier. Is that so certain? If they feel that the Australian market is different to other markets they operate in and can support something in between a full service and budget carrier, the niche Virgin fills today, why change it?

I guess it may depend on any evidence of changes in the market profile. At the moment it’s difficult to tell, but their could well be a shift away from business travel for the foreseeable future.

 

[oz_mark]

Maybe the thread members contributing here should pick a winner for us all here and we can ping it to our AFF consultant friend who fed us all the intel in the early days! Make it happen

I may have to go back though all this and refresh myself on who said what!

 

[cove]

There is all the infrastructure for a full service airline based on the lounges in the capital cities. Going to a LCC model totally would cost the airports with lots of unused space.

 

[Notyourbag]

More from the AFR:

Virgin Australia's auction will move into the second round with four shortlisted bidders on Monday morning.

It is understood administrator Deloitte was finalising the shortlist on Sunday night, and encouraging some of the interested parties that had put forward debt-based proposals to link up with the four shortlisted bidders.

There were believed to be five bidders competing for the four shortlisted spots on Sunday night. The parties included private equity firms BGH Capital, Bain Capital and Brookfield, and American aviation investor Indigo Partners.

Street Talk can also reveal there was a surprise entrant, European firm Cyrus Capital Partners, which was previously invested alongside Richard Branson in Virgin Atlantic.

http://www.afr.com/street-talk/deloitte-whittles-virgin-bidders-down-to-four-20200517-p54tov

Does anyone know anything about cyrus Capital Partners? Let's hope if they win they dont have Miley or Billy-Ray on the tail!

 

[jase05]

Now this is nowhere near my level of expertise but just sounds like a real mess. Are the administrators making a total hash of this or is it just media speculation?

BGH, Bain, Indigo and Cyrus form Virgin bid shortlist

The race for Virgin Airlines has gone down to a short list of four bidders Ben Grays BGH Capital and its partner AustralianSuper, Bain Capital, US-aviation firm American Indigo Partners and private equity investor Cyrus Capital Partners.

amp.theaustralian.com.au

 

[Bundy Bear]

This may still take a while to pan out as until the Australian state borders are open then no new owner is going to want to take over.

I hope VAmk2 doesn't go down the path of ULCC, I am hoping something between JQ and Qantas but likely closer to Jetstar.

 

[dajop]

There is all the infrastructure for a full service airline based on the lounges in the capital cities. Going to a LCC model totally would cost the airports with lots of unused space.

An opportunity for airports to work a lounge operator network + Priority Pass?

 

[Doctore1003]

Final four confirmed: Bain Capital, BGH Capital, Indigo Partners and Cyrus Capital Partners.

Virgin Australia's fantastic four, shortlist confirmed

Virgin Australia and its administrator Deloitte have wrapped up a long weekend of negotiations.

www.afr.com

 

[tomlee1986]

if that is the case the indigo partners is the front runner, but anything is possible still

 

[jakeseven7]

QLD government wisely retreated from the process and will just work with any successful new owner to try and keep VA2 in QLD.

They will face off with VIC and NSW to do so though!

Virgin deadline day: Deloitte receives eight indicative offers – Australian Aviation

australianaviation.com.au