Virgin Australia Financially Secure? [Now in Voluntary Administration]

[jakeseven7]

Back on topic to VA.....



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TWU REBUFFS VIRGIN ‘BONDHOLDER BID’


The TWU and Virgin’s administrator have both rebuffed an apparent intervention by bondholders to enter the bidding war for the airline at the 11th hour.

The union’s national secretary, Michael Kaine, called the move “unsettling”, while a statement released by Deloitte hours after the final deadline passed pointedly made no mention of a third bid.

Full article:

TWU rebuff Virgin ‘bondholder bid’, Queensland shows hand

The TWU and Virgin’s administrator have both rebuffed an apparent intervention by bondholders as Queensland is reported to have struck deals with both final bidders.

australianaviation.com.au

 

[antycbr]

No, not yet........

If they do I would expect any assistance to them to be reduced proportionally by their own foreign ownership.

 

[HappyFlyerFamily]

If they do I would expect any assistance to them to be reduced proportionally by their own foreign ownership.

Being rhetorical....

but what about Aussie jobs (but ignoring foreign-destined profits)!!!

 

[antycbr]

Being rhetorical....

but what about Aussie jobs (but ignoring foreign-destined profits)!!!

The government has thrown Dnata to the wolves already which will have a crippling impact on ground services in Australia. Whoever is giving McCormack advice clearly has no idea that aviation is a global industry.
It’s pretty safe to say that there will be NO profit to be siphoned off this year for any sector participant.

 

[Bagpuss]

It would not surprise me if the entire ATR fleet is returned to lessors or the lessors transferred the lease to other operators.
The VARA F100s would have to be in under interest from the eyes of Alliance Airlines (or Network Aviation).

I expect the ATR's to be returned to lessors.
Also agree in terms of the F100s.
I think moving away from the F100 model, WA FIFO and intrastate maybe profitable at the moment but in the coming years not so as the aircraft will need to be refreshed.
I wouldn't be surprised if some routes are flown by Alliance on behalf of VA or a VA codeshare.

 

[Melburnian1]

The government has thrown Dnata to the wolves already which will have a crippling impact on ground services in Australia. Whoever is giving McCormack advice clearly has no idea that aviation is a global industry...

The 'crippling effect' claim is untrue, and has been publicly refuted two or three weeks back. Dnata has competitors.

 

[RAM]

How much is an A380 worth as security? I'd wager it'd be parts and scrap only soon...

As security it is now worth zero on the secondary market from recent reports. Due to length of time Malaysian's planes have sat costing money & the failure with the part out of the first 2 SIA leased A380s returned - it appears they are a millstone.

VA's B777s on the other hand do have some value, and depending on what happens with Boeing on the new B777 versions - could increase in value marginally. However, just like for Q with their many fold larger international fleet, closed international borders make VA's B777s an ongoing cash drain. I suspect the economics of massively boosting SYD-MEL with them is not at all favourable unless 85% seats sold & other cargo full.

 

[support]

Please take A380 discussion to the appropriate thread. Further discussion may be deleted.

 

[jakeseven7]

Couple more articles from today:

1) Speculating on how many jobs will be lost when Cyrus/Bain downsize VA2 and take the brand down market from current positioning

2) More details on how much taxpayer money QLD state government had to put up to keep VA2 grounded in Brisbane, again! ($200M)

Virgin Australia To Stay Based In Queensland Following $138m Offer

simpleflying.com

No Cookies | The Courier Mail

No Cookies

www.couriermail.com.au

 

[BNEFlyer]

Couple more articles from today:

1) Speculating on how many jobs will be lost when Cyrus/Bain downsize VA2 and take the brand down market from current positioning

2) More details on how much taxpayer money QLD state government had to put up to keep VA2 grounded in Brisbane, again! ($140M)

For some reason that article is in US$. QIC are committing $200m to VA.

 

[antycbr]

The 'crippling effect' claim is untrue, and has been publicly refuted two or three weeks back. Dnata has competitors.

OT: Still not happy with 6000 Australians with mortgages and lives put through the wringer simply because the company they happened to work for was owned by a country smart enough to actually have a sovereign wealth fund. Jobkeeper is arbitrary and fundamentally flawed.

back on topic: who do VA use for ground services and are they going to be OK for a revitalised VA? I know that they used Aerocare/Swissport.

 

[TheInsider]

back on topic: who do VA use for ground services and are they going to be OK for a revitalised VA? I know that they used Aerocare/Swissport.

Depends on what port. Major ports are generally their own staff and not contract companies.

 

[OrangeRoughie]

Virgin bondholders lob 11th hour proposal to stop sale, relist airline

Virgin Australia's bondholders have put an advanced recapitalisation proposal to the airline's administrator Deloitte, in an effort to recoup some of their $2 billion-odd investment.

www.afr.com

Plot twists continue - for those that don't have access bondholders are looking to convert to shareholders, company to recapitalise and relist with a market cap of approx $1.4b. Bondholders would also put in a further $1b

 

[Gold60]

who are the bondholders - as opposed to the shareholders. i believe the shareholders are the four airlines and Branson ? Thanks.

Virgin bondholders lob 11th hour proposal to stop sale, relist airline

Virgin Australia's bondholders have put an advanced recapitalisation proposal to the airline's administrator Deloitte, in an effort to recoup some of their $2 billion-odd investment.

www.afr.com

Plot twists continue - for those that don't have access bondholders are looking to convert to shareholders, company to recapitalise and relist with a market cap of approx $1.4b. Bondholders would also put in a further $1b

 

[jakeseven7]

Virgin bondholders lob 11th hour proposal to stop sale, relist airline

Virgin Australia's bondholders have put an advanced recapitalisation proposal to the airline's administrator Deloitte, in an effort to recoup some of their $2 billion-odd investment.

www.afr.com

Plot twists continue - for those that don't have access bondholders are looking to convert to shareholders, company to recapitalise and relist with a market cap of approx $1.4b. Bondholders would also put in a further $1b

The unions have rejected the last minute bondholder attack..... So I guess that ends that!

 

[dajop]

who are the bondholders - as opposed to the shareholders. i believe the shareholders are the four airlines and Branson ? Thanks.

Previous shareholders were the three airlines (EY, SQ, HU), the Nanshan Group, Branson and those with shares listed on the ASX.

 

[Gold60]

thanks dajop. who and/or what are the bondholders? Are there major ones, or just a heap of them like ordinary folk from the public?

Previous shareholders were the three airlines (EY, SQ, HU), the Nanshan Group, Branson and those with shares listed on the ASX.

 

[OrangeRoughie]

thanks dajop. who and/or what are the bondholders? Are there major ones, or just a heap of them like ordinary folk from the public?

Virgin's bondholders revealed

The (virtual) attendance list at Virgin's last creditor meeting offers clues as to which institutions hold a portion of the airline's $2 billion in bond debt.

www.afr.com

Not sure if you're able to access that Gold60, however according to this article there are a number of fund and asset managers, names include FIIG, Yarra Capital Management, Crestone, Morgans, Realm Investment Management and a number of others

 

[Gold60]

thank you roughie.

i tried to look at the AFR, but couldn't read quickly enough - a speed reader course maybe in order LOL.....


but from your other info, i get the general idea of who they are. One hopes there aren't too many mum and dad like investors. Or people who don't know much about this type of financing.

Virgin's bondholders revealed

The (virtual) attendance list at Virgin's last creditor meeting offers clues as to which institutions hold a portion of the airline's $2 billion in bond debt.

www.afr.com

Not sure if you're able to access that Gold60, however according to this article there are a number of fund and asset managers, names include FIIG, Yarra Capital Management, Crestone, Morgans, Realm Investment Management and a number of others

 

[MooTime]

cheers for all the info articles by all.

So as i read it, next Tue Deloitte choose a preferred bidder, then there's a creditors meeting in mid Aug?

I'm sure a lot of something / review of sorts happens in July & start of Aug, but seems quite a time frame. Guess not lot of flying anyway. However I do have early Aug flights to Syd, pity City2Surf cancelled.

Creditors vote their preference / unions etc so Deloitte's preference is irrelevant as I see it ??

This Bondholders 11th hour bid surely void as was the Brookfield other 11th hour bid.

Am I correct in this?

otherwise seems Cyrus & Bain have very comparable bids, am I right in saying they both will:
* align with velocity, retaining all points.
* honor all existing flight bookings, credits etc
* retain lounges at least in capital cities.
* retain basic business class in 737's.

That's basically the main ones from my perspective. If those points stay as is, I think most will be content.

Haven't heard anything if they'll keep the status levels, assuming they will.