Bain Capital has emerged as the winning bidder for Virgin Australia, with the administrators agreeing to sell the ailing airline to the Boston-based private equity firm.
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.
Deloitte said it does not expect any return to shareholders, and at this stage it isn’t possible to estimate the return to Virgin’s creditors, who are owed $7 billion.
“Bain Capital has presented a strong and compelling bid for the business that will secure the future of Australia’s second airline, thousands of employees and their families and ensure Australia continues to enjoy the benefits of a competitive aviation sector,” Virgin administrator Vaughan Strawbridge said.
Deloitte said the transaction will also carries forward all Velocity frequent flyer booked flights, honours all employee entitlements, and supports the current management team led by Paul Scurrah and their improvement plan for the airline.