Virgin buyers
Virgin buyers

Virgin sale brings bad news for airline’s shareholders

VIRGIN Australia investors are unlikely to receive any cash for their shares after the airline entered into a sale agreement with private firm Bain Capital on Friday.

Deloitte Administrators for Australia's second-largest carrier told shareholders they are unlikely to receive any distribution for their shares held.

In a statement to the ASX this morning administrators, led by Vaughan Strawbridge, said "we do not expect there will be sufficient recoveries to repay creditors in full".

"We have reasonable grounds to believe that there is no likelihood that shareholders of VAH will receive any distribution for their shares," the statement said.

Shares in the airline were halted from trade on April 9 at 8.6c.

Bain Capital's purchase will privatise the airline, leaving many mum and dad investors at a loss.

Bondholders had lodged an eleventh-hour proposal to Deloitte to recapitalise the airline and list it on the ASX as a public company operated by Australians.

The group said Deloitte's decision to allow Bain to purchase Virgin was disappointing for the airline's employees, creditors and retail bondholders."

"The inevitable outcome of the Bain proposal is that investors are left with a very poor recovery, which is a manifestly unjust outcome," a group spokesman said on Friday.



'I thought it was a tumour’: Youngster’s shock diagnosis

premium_icon 'I thought it was a tumour’: Youngster’s shock diagnosis

A mum reveals how daughter's seriousness illness changed their lives

Warwick train tourism to soar with new initiative

premium_icon Warwick train tourism to soar with new initiative

‘Not just a steam train ride’: Rebranding pushes Rose City toward future as...

MORNING BRIEF: All the news you need to start your day

premium_icon MORNING BRIEF: All the news you need to start your day

The Daily News rounds up the region’s biggest stories, alongside weather...