Virgin Australia’s unsecured creditors to get 9-13% return under Bain deal: administrator

Virgin Australia Holdings Ltd’s (VAH.AX) unsecured creditors will receive an average return of 9-13% of their funds as part of U.S. private equity group Bain Capital’s proposed purchase of the airline, administrator Deloitte said in a report on Tuesday. The unsecured creditors include bondholders owed A$2 billion ($1.43 billion). Priority creditors and employees will receive 100% of funds owed, the report said. Unsecured bondholders Broad Peak and Tor Investment Management on Friday withdrew plans to propose a rival debt-to-equity recapitalisation deal they said would provide a higher return, leaving the Bain deal as the only real option apart from liquidation.

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