According to a new Guardian Australia report, the shortlisted bidders for Virgin Australia are concerned about the federal government’s lack of financial support for the airline.
As we reported earlier this month, Virgin Australia’s administrator Deloitte has shortlisted four “highly credentialled” bidders.
The four bidders were revealed as Private investment firm Bain Capital, private equity firm BGH Capital, US aviation investor Indigo Partners and global investor Cyrus Capital Partners.
The Guardian reported that sources close to the sales process “were becoming increasingly worried about a period estimated at between four to six weeks during which the airline will have no cash”.
The four shortlisted bidders are expected to lodge indicative bids for the airline today. This will then see Deloitte pick about two bidders to advance into the final stages.
All four bidders have now publicly expressed what they’d like to do with Virgin Australia if successful.
BGH Capital would look to restart Virgin Australia as “a bare-bones airline” with just a handful of planes while The Indigo consortium is looking at turning Virgin Australia into a budget airline.
Cyrus Capital, on the other hand, wants to maintain a stripped-down version of the current airline by reducing some aircraft and routes.
Meanwhile, it has been reported that Bain Capital has spent “significant resources” setting up a well-regarded team of local advisors.
All four potential bidders are looking for government help to bridge the gap between agreeing to the purchase and getting approval from the creditors.
“Government inaction is now having a material effect on the quality of the airline that gets back in the air – if it can get back in the air,” Transport Workers Union national secretary Michael Kaine told Guardian Australia.
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