A push by two Virgin Australia bondholders to disrupt the bankrupt airline’s sale to Bain Capital has gained the support of investment giants including Credit Suisse, Deutsche Bank and UBS.
Documents filed on behalf of Broad Peak Investment Advisors and Tor Investments in the NSW Federal Court on Tuesday claim that bondholders, owed a combined $800 million, now back their alternative proposal for the airline.
Virgin owes $2 billion to unsecured bondholders among a total debt pile of $6.8 billion. Broad Peak and Tor, which are Singapore and Hong Kong based investors owed around $300 million, want ownership of Virgin handed to creditors rather than the airline be sold to Bain.
Corrs Chambers Westgarth lawyer Cameron Cheetham, acting for the two investors, told the court that in the past week his firm had received statements of support for the rival proposal from around 60 bondholders including UBS, Credit Suisse, Deutsche Bank, Morgans, Mason Stevens, Escala Partners, Mutual Limited, Aberdeen Standard Investments and Yarra Capital Management.