Virgin Australia to be sold to Bain Capital

[jakeseven7]

Which gets contributed to VA when someone redeems a flight. That money can't get there if everyone buys toasters.

What about a flying toaster then?

Lots of people won't want to book VA flights for while... until they feel comfortable they won't collapse again (not my personal feeling but reading all the FB comments on all the news articles - people are wary)

 

[Matt_01]

.....Lots of people won't want to book VA flights for while... until they feel comfortable they won't collapse again.....

I actually made one this morning, well sort of. I had 2 remaining bookings (all the others have been cancelled) scheduled for the next 2 weeks. I have had no official confirmation from VA that the original fights were cancelled however VA have re booked me on other fights that I will not be able to make. Based on my previous dealing with VA and AMEX I just moved these bookings to a random date in October. I figure if VA did end up going into liquidation the chargeback process will be easier and if they remain in business I can just change the flights at a later time. It is also likely to be the only 2 flights I take with VA.

It was a bit surreal booking a flight after so many cancellations.

 

[jakeseven7]

Did anyone just see on Channel 7 news (so hardly the leading edge of accuracy) they reported Bain have announced 4000 jobs will go, on top of the PS cuts announced which means they will literally halve in size....

More than expected if true, but massive caveat just saw it on Channel 7 which I don’t exactly trust!

 

[oz_mark]

Did anyone just see on Channel 7 news (so hardly the leading edge of accuracy) they reported Bain have announced 4000 jobs will go, on top of the PS cuts announced which means they will literally halve in size....

More than expected if true, but massive caveat just saw it on Channel 7 which I don’t exactly trust!

There's been a range of numbers touted over the last month, between 2,000 and 4,000. The media do seem to have settled on 4,000 in the last few days.

I expect sometime in the next week or two, there'll be an announcement of just what Vrgin will look like, how many staff it needs and so on.

 

[jakeseven7]

There's been a range of numbers touted over the last month, between 2,000 and 4,000. The media do seem to have settled on 4,000 in the last few days.

I expect sometime in the next week or two, there'll be an announcement of just what Vrgin will look like, how many staff it needs and so on.

Could well be Bains team leaking 4000 out prior to an official announcement to soften the unions / everyone up....

 

[GoldCanyon340]

Could well be Bains team leaking 4000 out prior to an official announcement to soften the unions / everyone up....

And then settle on 3,000 job losses to make them look like the good guys.

 

[antycbr]

If you shut down VAI and the A330/ATR crew that’s a fair few.

 

[jakeseven7]

Here they come...

——

Virgin sale faces first legal obstacle as court fight over jet engines fires up

The sale of Virgin Australia to Bain Capital is facing a fresh legal obstacle after a major aviation leasing group launched court action to repossess jet engines and other parts it had supplied to the airline prior to its collapse.

They are seeking orders from the court that Virgin Australia and its administrators deliver the aircraft equipment to the applicants at Coconut Creek, in Florida by not later than July 31.

Willis is not the first financier to raise questions about the wide-ranging orders. As The Age and Sydney Morning Heraldrevealed, another financier, Pembroke had also raised concerns about the orders not allowing them to collect rent or repossess the planes they had leased to Virgin.

Full article:

Virgin sale faces first legal obstacle as court fight over jet engines fires up

The sale of Virgin Australia to Bain Capital is facing its first legal hurdle.

www.google.com.au

 

[RAM]

Here they come...

——

Virgin sale faces first legal obstacle as court fight over jet engines fires up

The sale of Virgin Australia to Bain Capital is facing a fresh legal obstacle after a major aviation leasing group launched court action to repossess jet engines and other parts it had supplied to the airline prior to its collapse.

They are seeking orders from the court that Virgin Australia and its administrators deliver the aircraft equipment to the applicants at Coconut Creek, in Florida by not later than July 31.

Willis is not the first financier to raise questions about the wide-ranging orders. As The Age and Sydney Morning Heraldrevealed, another financier, Pembroke had also raised concerns about the orders not allowing them to collect rent or repossess the planes they had leased to Virgin.

Full article:

Virgin sale faces first legal obstacle as court fight over jet engines fires up

The sale of Virgin Australia to Bain Capital is facing its first legal hurdle.

www.google.com.au

The 'pips' are squeaking.

There'll be much more grandstanding in the next few weeks PRIOR to the deadline for the VAdministrator to mail/email out the proposal to all registered creditors.

Nobody expects any statements to be coming from AJ & Co either do they? Anything that happens is just coincidental.

A cynic might say this is a last chance for all the 'clip the ticket brigade', perhaps even dozens strong teams, to get some more revenue before the golden goose is done.

Of course nobody would do that just to line their own pockets or further their own interests at the expense of others.

For example I would not be surprised to see articles such as this one (pulled from a CDC report unfortunately) which points out that there are two totally unpreventable extended periods of cross-contamination on every flight UNLESS everyone is wearing a quality mask correctly. I had not thought of this infection risk at all

Air travel
Risk level: High

Flying is considered one of the highest risk activities you can do during COVID-19.

Why it's risky:

Unless it's absolutely necessary, you should avoid air travel until there is a vaccine or treatment for the virus. According to Dr. Kesh, it's among one of the riskiest situations to put yourself in when it comes to exposure to COVID-19.

"Airports tend to be high-stress places. People are always worried about making their flight, going to the security checks -- there's a lot of distraction. So the kind of focus that we are able to maintain with social distancing, the masks and hand hygiene, it sometimes goes out the window because your attention is scattered, it's noisy and you're trying to figure out where to go. So even people who are well meaning, the rules tend to go by the wayside," Dr. Kesh says.

The other problem with airports is that you can encounter people from all over the world or country, and those people could be coming from high-risk places and carrying the virus with them.

Once you are on the plane, it's almost impossible to stay 6-feet apart from others, even if no one is sitting near you. "When you're sitting on a plane waiting for it to take off, there is no air movement. If you turn on the fan above your head, that's the only air moving. It's a really terrific environment for one person to potentially infect the whole plane," Dr. Kesh says.

How to reduce risk:

If you need to fly, you should wear a mask at all times. Try to book a flight that is less crowded, even if you have to go at a time that is not ideal. Check with airlines to see who is taking the virus more seriously, and ideally is limiting capacity, in addition to doing more deep-cleaning.

When you get on the plane, be sure to wipe down your seat and tray with disinfectant wipes. If you can bring a seat cover, that is even better. If you go to the bathroom on the plane, be sure to wash your hands and use hand sanitizer when you touch anything that others could touch.

_________________________​

Same lack of air renewal (so widely publicised every 2-3 minutes air completely replaced/filtered by HEPA etc etc) after landing.

 

[jakeseven7]

So they had to move Virgin, fast, to anyone with a pulse and some $

——-
Time would have run out for Virgin Australia

Virgin Australia would not have been able to continue to operate until the August 22 creditors’ meeting if administrators had not negotiated a sale and interim funding by June 30.

Redirect Notice

 

[HappyFlyerFamily]

So they had to move Virgin, fast, to anyone with a pulse and some $

——-
Time would have run out for Virgin Australia

Virgin Australia would not have been able to continue to operate until the August 22 creditors’ meeting if administrators had not negotiated a sale and interim funding by June 30.

Redirect Notice

Yep. That seemed obvious.....even probably to ‘Blind Freddy’

 

[drron]

Was that the Freddy who gave VA all the airline awards for Oceania for 2020?

 

[AIRwin]

Was that the Freddy who gave VA all the airline awards for Oceania for 2020?

Velocity

 

[serfty]

Was that the Freddy who gave VA all the airline awards for Oceania for 2020?

Actually, no ... Freddy was not blind.

I am Platinum with both Velocity and Qantas Frequent flyer and in my experience felt VA had tended to provide a superior and more consistent soft product than Qantas for the last few years.

 

[drron]

Velocity

Though Velocity without VA doesn't really cut it does it.

 

[travel_bug]

Bondholders don't seem to be happy that their late bid wasn't considered...
Deloitte has described this action as "without merit" and will defend any claims against them that are put forward to the Takeover Panel.

It does seem a bit weak on the info provided, particularly as the administrator has regularly obtained court orders in relation to the conduct of the administration. Add to that that the bondholders' didn't properly participate in the bidding process - I'm not sure how the Takeover Panel would find against Deloitte/Bain.

Virgin Australia investors owed $2bn try to block sale to Bain Capital

Bondholders call for administrators’ selling process to be declared unacceptable

www.theguardian.com

 

[Bagpuss]

Bondholders don't seem to be happy that their late bid wasn't considered...
Deloitte has described this action as "without merit" and will defend any claims against them that are put forward to the Takeover Panel.

It does seem a bit weak on the info provided, particularly as the administrator has regularly obtained court orders in relation to the conduct of the administration. Add to that that the bondholders' didn't properly participate in the bidding process - I'm not sure how the Takeover Panel would find against Deloitte/Bain.

Virgin Australia investors owed $2bn try to block sale to Bain Capital

Bondholders call for administrators’ selling process to be declared unacceptable

www.theguardian.com

Unsecured.
Also put in their bid after the deadline.

 

[travel_bug]

Unsecured.
Also put in their bid after the deadline.

Reminds me of students who would complain when lecturers refused to assess their late submitted assignments.

 

[jakeseven7]

Bondholders don't seem to be happy that their late bid wasn't considered...
Deloitte has described this action as "without merit" and will defend any claims against them that are put forward to the Takeover Panel.

It does seem a bit weak on the info provided, particularly as the administrator has regularly obtained court orders in relation to the conduct of the administration. Add to that that the bondholders' didn't properly participate in the bidding process - I'm not sure how the Takeover Panel would find against Deloitte/Bain.

Virgin Australia investors owed $2bn try to block sale to Bain Capital

Bondholders call for administrators’ selling process to be declared unacceptable

www.theguardian.com

Realistically though would the bondholders have been able to inject cash immediately anyway?

Because as we just discovered, Deloitte flogged VA1 quick smart to Bain because they were outta cash - right NOW!

 

[RAM]

Realistically though would the bondholders have been able to inject cash immediately anyway?

Because as we just discovered, Deloitte flogged VA1 quick smart to Bain because they were outta cash - right NOW!

.... which happened reportedly because early in the piece one (or more) of its banks decided to hold onto all the cash in VA accounts held with them as 'potential security'.

Never said what the 'potential security' was for?

Could it have been 'cross-collateral' for credit card claims against VA on cards issued by that particular bank that just MIGHT have issued VA-focused ccs?

Good illustration of 'never have all your eggs in one basket' - as when it hits the fans some big banks have a long history of acting first & then looking at the legality at a later date.

Anybody remember the Swiss Franc loans debacle?

2) Was nearly knocked down with a feather earlier today.....

I came across the FIRST accurate article about VA's debt and bondholders. I know, at first I thought I must have been sniffing the tea-bags - but no, the article made the clear distinction of secured vs unsecured debt holders.

Now, I'm sure everybody will immediately be wanting to subscribe to this obviously first class rarity of extremely accurate Financial source. You'd be disappointed - it is not a Finance site.

Perhaps some Govt regulatory site? No.

Credit ratings agency? No.

Trash newspapers? No.

Old article I forgot I'd created? No.

Travel blog? Yes, you guessed it. Leave it to a points chasing blog writer to get the detail correct (I wonder how they do with lotto numbers?).

Bain vs Bondholders, the final showdown for Virgin Australia

The sale of Virgin Australia is entering the final stages. We take a look at where things are at and what this means for Velocity members.

www.pointhacks.com.au

...eleventh-hour rival bid from unsecured bondholders ...

The successful bidder will need to get the majority of creditor votes, both in terms of number as well as by value. The 9,000 strong staff of Virgin hold the majority in the former, while bondholders, mostly secured, have the majority in the latter.

For a concise summary of close to every interesting aspect of the VA VA status - worth reading.