30 April 2020: Update from Virgin Australia Administrators
Deloitte has appointed merchant bank Morgan Stanley to run Virgin Australia sale process.
The administrators of Virgin Australia have just released a statement following the first creditors’ meeting of the airline, saying that a large number of parties have expressed an interest in taking over the carrier.
Administrator Vaughan Strawbridge from Deloitte said a data room and information memorandum had been established, with eight non-disclosure agreements signed and negotiations continuing with a further 12 parties.
Morgan Stanley and Houlihan Lokey have been appointed to run the sales process, and the Administrators also advised that they intend to seek a three month extension of the period to convene a further meeting, based on the “scale and scope of their work to position the business for a successful sale”.
That would take the period before which a second meeting of creditors is required out to 22 August.
“Our objective is to restructure and refinance the business so it emerges stronger on the other side of the COVID-19 crisis,” Strawbridge said.
“We are now moving quickly to finalise a business plan to help guide interested parties,” he added, with indicative offers sought by 15 May and binding submissions then required the following month.
“We remain confident that our target of achieving a sale by the end of June is achievable,” Strawbridge added, with Deloitte remaining strongly focused on restructuring and refinancing the business to create a viable operation which will appeal to prospective new owners.