Bain Capital, Cyrus Emerge as Final Virgin Australia Suitors

(Bloomberg) -- Bain Capital and Cyrus Capital Partners emerged as the final suitors for Virgin Australia Holdings Ltd. as administrators race to sell the airline before it runs out of cash.

Deloitte, which is overseeing the sale, said Tuesday it whittled down possible buyers for the collapsed carrier to U.S. private-equity firm Bain and U.S. investment group Cyrus following five second-round bids last week. Deloitte described both groups as “well-funded.”

Final offers are due by June 12, and Deloitte said it still plans to strike a deal by June 30.

Virgin Australia has about A$100 million in cash, enough to see it through this month and complete the sale process, according to Deloitte. The airline collapsed in April, overwhelmed by about A$6.8 billion ($4.6 billion) in debt as revenue dried up in the coronavirus crisis.

“We are in a strong place when it comes to delivering the best possible commercial outcome for all creditors, and to see a strong and sustainable Virgin Australia emerge from this process,“ Deloitte administrator Vaughan Strawbridge said in a statement.

Representatives for Bain and Cyrus didn't immediately reply to emails seeking comment.

Cyrus has a history of aviation investment alongside billionaire Richard Branson's Virgin Group Ltd., a 10% shareholder in Virgin Australia. Cyrus was also among the early investors in Virgin America.

The latest shortlist drops Australian private equity firm BGH Capital, Brookfield Asset Management of Canada and private equity firms Indigo Partners and Oaktree Capital Management. Still, Deloitte left the door open for those parties and others to team up with the final bidders.

“That will, of course, be a matter for them,” Strawbridge said in the statement.

The state of Queensland is also considering co-investing in the airline through investment manager QIC in the hope of ensuring the business keeps its headquarters in the region, State Treasurer Cameron Dick has said.