Virgin Australia administrator chooses two final bidders

Deloitte has announced that it has selected two US private investment firms, Bain Capital and Cyrus Capital Partners, as the final bidders for Virgin Australia Holdings. The decision leaves three non-binding proposals out of the running, which local media had named as being from Indigo Partners, BGH Capital, and Brookfield Asset Management. The five non-binding proposals were received on Friday, May 29, and “over the weekend and the past two days” the administrators assessed the proposals. As the administrator for Virgin Australia Holdings, Deloitte is seeking a binding agreement with the winning bidder by June 30. “Both Bain Capital and Cyrus Capital Partners are well-funded, have deep aviation experience, and they see the real value of the business and its future,” said joint administrator Vaughan Strawbridge. “We will now spend the coming weeks facilitating in-depth bidder engagement with the stakeholders of the business and work closely with the preferred bidders in the lead up to binding final offers being received.” He clarified that “the strong interest coming from all parties has generated the competitive tension we have sought that is important in a process such as this” and that the administrators would work to deliver “the best possible commercial outcome for all creditors and to see a strong and sustainable Virgin Australia emerge from this process.”