Bond holders of the embattled Virgin Australia have sent an eleventh-hour proposal to administrators to stop the sale of the airline, instead suggesting recapitalising the company on the stock market.
The proposal comes just before administrators were due to make a decision between two bids for the company from Bain Capital and Cyrus Capital.
Under the new proposal, bond holders would turn into share holders of the airline through an equity stake, resulting in about $1 billion of new funds for Virgin Australia.
The company would also be relisted on the ASX with reports suggesting the new market value would be $1.4 billion.
Image: News Corp Australia