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Investing.com – Virgin Australia Holdings’ (ASX:VAH) bondholders lodged a recapitalization proposal with the struggling airline’s administrator Deloitte on Wednesday morning.
The proposal comes two days after Bain Capital and Cyrus Capital Partners submitted final and binding offers. It could involve a debt-to-equity swap among the bondholders, who are owed around AU$2 billion ($1.386 billion), as well as an AU$ 1 billion capital injection.
The airline had taken a hard hit even before the COVID-19 virus wiped out travel demand, entering voluntary administration in April with an AU$7 billion debt burden to its creditors.
Deloitte aims to choose a preferred bidder for the airline by the end of the month.
