Bain Capital, LP completed the acquisition of Virgin Australia Holdings Limited.
The sale and implementation deed is subject to minimal conditions precedent such as regulatory approvals. The deal will need to be approved by 50% of creditors by value and 50% by number to be finalized. Richard Branson and the Transport Workers Union thrown their support behind Bain Capital, saying they will back the proposal in the creditors meeting. Approval by the Australian Treasurer pursuant to Australian Foreign Investment Review laws has already been received by Bain Capital. As on July 15, 2020, Federal Court warned that the sale process could be delayed or terminated if they did not meet the obligations and the creditors' meeting is scheduled for before the end of August, 2020. As of November 10, 2020, Federal Court of Australia has approved the transaction.
As on October 15, 2020, transaction is expected to close in early November, 2020. As of October 21, 2020, completion is expected on or before November 30, 2020. As of November 16, 2020, the effectuation of the Virgin Australia Holdings DOCA is scheduled to occur on November 17, 2020. As part of the implementation steps to be undertaken prior to Completion, the Deed Administrators will transfer all of the issued share capital of Virgin Australia Holdings to Bain Capital or its nominee in accordance with the 444GA order and the Virgin Australia Holdings DOCA. Virgin Australia Holdings has also requested that it be removed from the official list of the ASX from close of trading on the date of completion.
Damien Hazard, Nikki Smythe, Mark Clifton, Damien Hazard, Nikki Smythe, Mark Clifton, Hayley Neilson, John Angus, Steven Catanzariti, Siva Subramaniam and Mel Swain-Tonkin of Herbert Smith Freehills acted as legal advisor to Bain Capital, LP. Morgan Stanley (NYSE:MS) acted as a financial advisor to Virgin Australia Holdings Limited. The Goldman Sachs Group, Inc. (NYSE:GS) acted as financial advisor to Bain Capital, LP. Jefferies acted as advisor to the Queensland Investment Corporation in the deal. Morgan Stanley and Houlihan Lokey acted as financial advisor to the administrator and John Greig, Salvatore Algeri, Richard Hughes, David Orr, Grant Sparks, Tim Heenan, Matt Donnelly, Sam Marsden, Kathryn Evans and Vaughan Strawbridge of Deloitte Restructuring Services acted as administrator for Virgin Australia Holdings Limited. Deloitte will receive fees of AUD 26.8 million. Timothy Sackar of Clayton Utz acted as legal adviser for the administrator. FTI Consulting (Australia) Pty Ltd acted as independent expert for Clayton Utz.
Bain Capital, LP completed the acquisition of Virgin Australia Holdings Limited (ASX:VAH) on November 17, 2020. Bain Capital won the final bid. Bain Capital is providing interim funding of AUD 125 million and promising to take economic responsibility for the business from July 1. All of the issued share capital of Virgin Australia Holdings have been transferred to Bain Capital or its nominee in accordance with the 444GA order and the Virgin Australia Holdings DOCA.