Well if Cyrus' pull out was for attention, I guess it didn't work.
So Cyrus tried to sweeten their offer after the deadline ? (ET quote above from Cyrus statement)
Then its not surprising Deloitte didnt reply.
Irrespective as to how 'hard they go', it won't be profitable....This hands a lot of power to Bain to go a lot harder than they pitched to reshape the business and take it more no frills - which is what they wanted to do before the unions started going at them at them in the media.
I don't recall anything that indicates that Deloitte were facilitating the entry of the bondholders. The bondholders had to force their entry to the dataroom.Well to be fair to Cyrus, if Deloitte gave any indication that they would consider the 11th Hour Bondholders bid, then that says to me that Deloitte may not be following their own rules and conditions in the process, and if thats the case, why not lob in a better/sweeter offer? As you say - gamesmanship abounds. Very short term thinking producing a suboptimal outcome for everyone.
Probably also an excellent example of why you never ever have a shortlist process that excludes bidders, and especially a process that narrows it down to 2 short listed bidders, because it only takes something to go wrong with one bidder, or malfeasance of one bidder, and you have lost all your competitive tension...... thats a stupid way to get the best deal possible for creditors/vendors/owners.
Why didn't Deloitte just run an open data room, give a simple timeline with a hard deadline then have period of no shop no talk, accept and clarify all bids (ignore any bids after the deadline) and then produce a list, then go through the list until the creditors find something acceptable to them? Any departure from a transparent process is just asking for a legal challenge from any unsuccesul bidders, and you dont want to start the process all over again because of an administrative bungle.
Was wondering how long it would take for our good friend Melburnian1 to raise this prospect. He's been banging on about it for the last 3,000 posts.Irrespective as to how 'hard they go', it won't be profitable.
Liquidation will be the result in the end.
3AW news says that Cyrus received an email receipt acknowledging bid submission, but that Deloitte hasn’t taken a phone call since!
I think Deloitte has stuffed it up big time if they it is true that they have not returned phone calls or emails to Cyrus but has kept engaged with Bain Ove the last few days then Deloitte should have a good kick up the butt. plus they should bring out a statement asap.
Re the last quote above - exactly. So Cyrus submitted a final, binding bid and then didn't get any feedback. This is exactly what I would have expected to have been done (maybe Deloitte could have said 'Sorry, but we can't engage more until the bid is assessed' - but maybe they did e-mail something like that). Its like handing in an exam paper and then expecting to discuss it with the teacher before it has been marked.I've run tenders where the rules required acknowledging a tender submission but no further communication could be entered into (for probity reasons) except at specific documented intervals.
All pretty unprofessional, IMHO.On the morning of 22 June 2020, Cyrus presented to the Administrators of Virgin Australia Holdings an offer to acquire the airline, its regional business and the frequent flyer program Velocity, in accordance with the Administrators’ procedures. However, since then, the Administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer.
On the morning of 25 June 2020, Cyrus submitted a further unsolicited package of value improvements and other compelling measures to increase the value of the transaction, improve the return to unsecured bondholders and deliver more certainty for the Administrators. This too received no response other than an acknowledgment of receipt.
Despite the material improvements put forward, the Administrators have still not engaged with Cyrus on its offer.
In response I quote an excerpt from @antycbr's post.Just because they have deep pockets doesn't mean they will use it ....
Bain have signed a deed and intend to proceed with the transaction at this point. They've had numerous points where they could have broken out of the process but have chosen not to. Bain has other investments in Australia and they'd lose their reputation moving forward if they pull out now. The bids are binding.
Totally agree, the Bain razor gang are sorely needed and VA2 will be stronger for it. I think that was the running consensus of those reading into it as well per the media reports, leaks and discussion on this board.I personally think VA has more chance of success under Bain with the radical surgery proposed. Cyrus would have not been the "tough love" that VA needs to succeed.
I've never suggested that a successful bidder would 'pull out' (after signing to take it on)....Bain have signed a deed and intend to proceed with the transaction at this point. They've had numerous points where they could have broken out of the process but have chosen not to. Bain has other investments in Australia and they'd lose their reputation moving forward if they pull out now...
Well, the Creditors still have to decide/vote on whether to accept the offer put to them by the Administrator. There was only ever going to be one recommended to them.Nothing to vote on. It is all over!
yes!Can the creditors reject Bain?