Virgin Australia and its administrator Deloitte have wrapped up a long weekend of negotiations by shortlisting four parties for the auction’s second round.
Street Talk can reveal the four parties are financial sponsors Bain Capital and BGH Capital, US aviation firm Indigo Partners and European investor Cyrus Capital Partners, which was previously invested alongside Richard Branson in Virgin Atlantic.
The second round starts on Monday. Final bids are due on June 12.
Management was due to be briefed at 9am on Monday morning.
There were two big surprises in the shorlisting. The first surprise was the emergence of Cyrus Capital Partners which had escaped the spotlight until Sunday night when this column flushed the firm out.
The second was that Canadian investor Brookfield did not make the cut.
Street Talk understands the asset manager was not shortlisted after a long weekend of talks that stretched into the early hours of Monday morning.
Regional Express and Alliance Aviation – two listed Australian regional airlines – were not in the mix, sources said.
The bidders were told Virgin’s data room would open on Monday morning and Virgin’s management would make its pitch to the four respective groups next week.
Deloitte is seeking to sell the company to recoup money owed to creditors, including aircraft owners, bondholders, employees and airport owners.
Virgin’s board put the company into administration in April and Deloitte has since found that more than 10,000 creditors were together owed more than $6.8 billion.
Virgin CEO Paul Scurrah is working with Deloitte to find a new owner and would like to continue to run the airline should it re-emerge from administration.
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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at [email protected]
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at [email protected]