Virgin Australia bondholders withdraw plans for proposal to rival Bain Capital deal

SYDNEY (Reuters) – Virgin Australia Holdings Ltd bondholders have withdrawn plans for a proposed recapitalisation of the airline that was meant to rival one from U.S. private equity firm Bain Capital, a spokesman for the bondholders said on Friday.

Singapore’s Broad Peak and Hong Kong’s Tor Investment Management had proposed the rival deed of company arrangement (DOCA) to recapitalise the airline, which is in voluntary administration.

The bondholders’ spokesman said a court ruling this week made it impossible to complete due diligence and present a substantially unconditional DOCA proposal to rival Bain’s at a creditors’ meeting on Sept. 4.

(Reporting by Jamie Freed; Editing by Himani Sarkar)