Virgin Australia Financially Safe under Bain?

[HS-TQE]

Yes VA2 will be operating for a while we don’t have to worry about that because to sell it, Bain will want it running.

How ‘sound’ the operating model is will be completely and 100% hidden from public view with only good news PR sound bites used from here on in - and Bain they don’t really care how sound it is as long as it looks good enough to a suitor in 3-5 years for the on sell.

VA would be one of Bain's greatest challenges to restructure. Little to no assets to sell/borrow against (Assets already raided by the previous owners for loans and/or sold and leased back).

Velocity is in a trust fund which would make it tricky for Bain to 'raid'.

I can't see VA ending up in the portfolio of Boost Juice/Bettys Burgers/etc - companies that Bain has held in the longer term (e.g past the typical 3-5 year period).

 

[jakeseven7]

VA would be one of Bain's greatest challenges to restructure. Little to no assets to sell/borrow against (Assets already raided by the previous owners for loans and/or sold and leased back).

Velocity is in a trust fund which would make it tricky for Bain to 'raid'.

Please, VA1 raided Velocity, its not that hard they forced Velocity to give them a 'loan'

They will do it again if they want.

 

[RAM]

Please, VA1 raided Velocity, its not that hard they forced Velocity to give them a 'loan'

... which got repaid in full as a priority creditor and was only for a portion not the complete cash held backing the value of VFF points.

Whereas Q raided QFF points from set-up, as it is made clear & specifically states that 'QFF points have no cash value'.

Reminds me I need to dig through Q's half year reports . What wonders will they reveal this time!

 

[oz_mark]

Velocity is in a trust fund which would make it tricky for Bain to 'raid'.

Good chance it will end up not in a trust fund.

 

[Must...Fly!]

The obvious negative for Bain owning VA is that the finances of the airline are no longer required to be disclosed to the public. However, still glad they survived of course.

 

[RAM]

I can't even start to reply, it is also so far off-topic to VA's financial security, that ulitmately resulted in the collapse.

In fact this thread should probably close lol - the VA1 financial security was not there, the airline collapsed, thread over Has probably outlived its usefulness now...

Makes VA Mk II's cash backing (to the tune of around $500m it appears) of VFF points looking better & better vs Q's QFF having no cash value (nor cash backing). The underlying trust deed seems quite water tight in favour of VFF point holders.

VA Mk II is looking relatively stronger & stronger by the day.

 

[ANstar]

Nice to speculate by I don't think QF are going anywhere.

 

[RAM]

Nice to speculate by I don't think QF are going anywhere.

Have a read of their half year results (released Feb 25th). Not promising (still massive cash haemorrhaging) compared with VA Mk II's new low cost base, significantly younger fleet, no long term property lease overhang nor around 4,000 redundancies still to pay out (as of 31 Dec 2020).

VA Mk II has net tangible assets while Q has net tangible liabilities (as of 31 Dec 2020). VA Mk II is not counting on using up billions in accumulated tax losses to make its balance sheet positive.

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Perhaps your "I don't think QF are going anywhere" may end up being an unintended pun...