Virgin Aust bondholder request denied

The Federal Court has rejected an effort by some of Virgin Australia’s creditors to get an inside look at Bain Capital’s winning bid for the bankrupt airline.

Justice John Middleton on Friday threw out the application by bondholders Broad Peak Investment Advisors and Tor Investment Management and awarded the defendants costs.

Virgin’s voluntary administrator, Deloitte, and Bain Capital had opposed the request saying that it was liable to disrupt the process and impede the ability of the administrators and purchasers to complete the sale of the airline to the Boston-based private equity firm.

Broad Peak and Tor had submitted an alternative bid in which their debt would be converted to equity, but that was rejected by Deloitte during the sale process.

Whether the sale of the airline goes through to Bain will be decided at a second meeting of creditors in August.

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