Virgin Australia’s unsecured creditors to get 9-13% return under Bain deal: administrator

SYDNEY (Reuters) – Virgin Australia Holdings Ltd’s unsecured creditors will receive an average return of 9-13% of their funds as part of U.S. private equity group Bain Capital’s proposed purchase of the airline, administrator Deloitte said in a report on Tuesday.

The unsecured creditors include bondholders owed A$2 billion ($1.43 billion). Priority creditors and employees will receive 100% of funds owed, the report said.

Unsecured bondholders Broad Peak and Tor Investment Management on Friday withdrew plans to propose a rival debt-to-equity recapitalisation deal they said would provide a higher return, leaving the Bain deal as the only real option apart from liquidation.

(Reporting by Jamie Freed; Editing by Himani Sarkar)