SALE OF BUSINESS ENTERPRISES – AUSTRALIA

Don’t vote down Bain out of spite: unionist

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Original article by Robyn Ironside
The Australian – Page: 15 : 10-Aug-20

Virgin Australia CEO Paul Scurrah said recently that it would retrench a third of its workforce to help it return to profit and to survive the COVID-19 pandemic. Australian Licensed Aircraft Engineers Association secretary Steve Purvinas says he is concerned to hear talk that some of those who will lose their job have indicated they plan to vote against the airline’s deal with Bain Capital. He contends a ‘no’ vote would amount to spite, while Purvinas says backing an alternative proposal to Bain’s that has been put forward by bondholders would not help employees.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIAN LICENSED AIRCRAFT ENGINEERS’ ASSOCIATION, BAIN CAPITAL LLC

Bain pumps crucial $125m into Virgin

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Original article by Lucas Baird
The Australian Financial Review – Page: 12 & 14 : 14-Jul-20

Virgin Australia aims to have 35 per cent of its pre-COVID-19 capacity in the sky by the end of August, according to the minutes of a committee of inspection meeting. The minutes also reveal that Virgin’s prospective new owner, Bain Capital, injected $125 million into the airline on 1 July to insure its immediate survival. The committee of inspection comprises a group of around 30 Virgin creditors, and lead administrator Vaughan Strawbridge says the committee has endorsed the sale of the airline to Bain Capital.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BAIN CAPITAL LLC

Bondholders move to stop sale of Virgin

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 22 : 7-Jul-20

Deloitte will oppose an application for the Takeovers Panel to halt the sale of Virgin Australia to private equity firm Bain Capital. Virgin’s bondholders want its creditors to be given an opportunity to vote on their proposal to recapitalise the failed airline; this includes a debt-for-equity swap and relisting Virgin on the sharemarket. A spokesman for Deloitte says the administrators believe that the application to the Takeovers Panel is without merit and the sale to Bain is the best outcome for all creditors.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, BAIN CAPITAL LLC

Wilson one of AAP’s mystery investors

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Original article by Max Mason
The Australian Financial Review – Page: 18 : 7-Jul-20

Wilson Asset Management founder Geoff Wilson is a member of the consortium that has acquired the newswire business of Australian Associated Press. Wilson has stressed that he contributed to the consortium via a privately-owned entity rather than any of his listed companies. The 35-member consortium finalised the deal in late June, and will formally take control of the business on 1 August.

CORPORATES
AUSTRALIAN ASSOCIATED PRESS PTY LTD, WILSON ASSET MANAGEMENT

Shareholders likely to miss out altogether from Virgin sale

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 16 : 1-Jul-20

Virgin Australia’s joint administrator Richard Hughes has advised that the failed airline’s creditors are unlikely to be repaid in full. He has also warned that Virgin’s shareholders are highly unlikely to receive any payout from its US-based private equity firm Bain Capital. Sources close to several of Virgin’s five major foreign shareholders have indicated that this outcome had been expected. Bain Capital will formally take control of Virgin on 1 July.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED, BAIN CAPITAL LLC

Bond holder bid shakes Virgin

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Original article by Robyn Ironside, Damon Kitney
The Australian – Page: 13 & 17 : 25-Jun-20

Virgin Australia’s administrator Vaughan Strawbridge has been presented with a debt-for-equity proposal from about 5,500 of the failed airline’s bond holders. They would receive shares in Virgin and provide an $800m capital injection for the airline, which would remain a listed company if their proposal is accepted. The bond holders would have the option of immediately selling their shares and receiving about $0.70 for every dollar that they are owed. Bond holders contend that it is best outcome for Virgin and its employees. Strawbridge is slated to select the preferred private equity bidder within days.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELOITTE TOUCHE TOHMATSU LIMITED

Bauer Media offloads Aussie magazine arm for $50m, eight years after buying it for $525m

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Original article by Shannon Molloy
News.com.au – Page: Online : 18-Jun-20

Private equity firm Mercury Capital has struck a deal to acquire the Australian magazines business of Bauer Media. The sale price has not been disclosed, although it is believed to be less than $50m. Germany-based Bauer bought ACP Magazines for $525m in 2012, and it recently paid $40m for the Pacific Magazines division of Seven West Media. The Mercury Capital deal is expected to be completed in July.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, MERCURY CAPITAL PTY LTD, BAUER MEDIA KG, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM

Growing Virgin bondholders group emerges as kingmaker

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 27 : 16-Jun-20

Final, binding offers for failed airline Virgin Australia are due on 22 June, with a decision on whether Bain Capital or Cyrus Capital Partners gets chosen as the successful bidder due at the second creditors’ meeting in mid-August. Unsecured bond and note holders in Virgin are owed around $2 billion, and a group of them has increased to almost 6,000 members in recent weeks; the group is getting advice from law firms Faraday and Corrs Chambers Westgarth on the sales process. Jason Harris from the University of Sydney Law School says any sales agreement that results in the bondholders getting little in the way of their money back is likely to be challenged in court.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BAIN CAPITAL LLC, CYRUS CAPITAL PARTNERS LP, FARADAY AND KENT, CORRS CHAMBERS WESTGARTH, QANTAS AIRWAYS LIMITED – ASX QAN

AAP enters final stages of sale, will continue to operate but says some jobs will be lost

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Original article by Hannah Blackiston
Mumbrella – Page: Online : 9-Jun-20

A consortium of investors and philanthropists headed by former News Corp Australia CEO Peter Tonagh is set to acquire the newswire business of Australian Associated Press. The consortium has commenced negotiations with AAP for a binding sale contract, and the deal is expected to be finalised by mid-June. The Media, Entertainment & Arts Alliance has welcomed the deal to sell the AAP Newswire business, but notes that it will result in the loss of some jobs. The consortium will retain 85-90 jobs, including at least 70 editorial staff. AAP’s existing shareholders will retain the other parts of its business.

CORPORATES
AUSTRALIAN ASSOCIATED PRESS PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Bidders spell out Virgin job cuts to unions

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Original article by Jemima Whyte,Lucas Baird
The Australian Financial Review – Page: 13 & 16 : 4-Jun-20

Bain Capital and Cyrus Capital Partners must submit binding offers for Virgin Australia by 22 June. The two final bidders for the failed airline are under growing pressure to outline their plans for Virgin, including the likely job losses. Unions held talks with Bain and Cyrus on 3 June, and some sources have suggested that more than 20 per cent of Virgin’s employees could be retrenched. BGH Capital is said to have been looking at cutting 2,000 jobs if it had acquired Virgin.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH,BAIN CAPITAL LLC,CYRUS CAPITAL PARTNERS LP,DELOITTE TOUCHE TOHMATSU LIMITED,BGH CAPITAL PTY LTD