Australia Virgin Australia shareholders unlikely to be paid

04:51  30 june  2020
04:51  30 june  2020 Source:   skynews.com.au

Virgin Aust to be sold to Bain Capital

  Virgin Aust to be sold to Bain Capital Virgin Australia administrators have agreed to sell the airline to Bain Capital to pay off its creditors.The sale and implementation deed is subject to minimal conditions and should be completed before the end of August, the Deloitte administration team said on Friday.

Virgin Australia ’s shareholders are few in number but large in complexity. With Australia ’s second-largest airline requesting assistance – loans, bailout – from the federal government, there is interest in who owns the airline and if they can prevent Virgin from filing for administration and going out of

Virgin Australia , Australia 's second-largest domestic airline, is unlikely to make significant capital returns to shareholders but the threat of a mop-up by the three airlines holding a combined 73 percent stake provides a floor COMMENT: The best Todd Muller can hope for at this election is to lose well.

Virgin Australia’s administrators, Deloitte, has sent out a press release saying shareholders of the airline should not expect to get any money back.

The announcement did not come as a surprise to many, as shareholders are typically the last to get paid out when a company goes into administration.

The total value of Virgin Australia’s shares is about $725 million valued at 8.6 cents each.

There are minimal retail investors as the airline is 90 per cent foreign owned, so big corporations are the major losers of Deloitte’s announcement.

Image: News Corp Australia

Qld govt offers $200m to Virgin bidders to remain in state .
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