VA's Bondholders and the Temasek Pte Ltd owned firm (Broad Peak Investment Advisors Pte Ltd) has dropped "their challenge" to the Bain takeover.
Temasek owned = not as it seems.VA's Bondholders and the Temasek Pte Ltd owned firm (Broad Peak Investment Advisors Pte Ltd) has dropped "their challenge" to the Bain takeover.
Thanks for sharing article.So, the bondholders can put their alternative DOCA to the Creditor's meeting, at least according to the Federal Court, releasing its judgement on the BH's prior application:
Bondholders back in hunt for Virgin, after Federal Court judgment
Bondholders in Virgin Australia hoping to put up an alternative proposal for the airline have been reassured by a Federal Court judgment that they will be able to do that.
Judge John Middleton published his judgment on Wednesday in response to the bondholders’ case seeking access to confidential details of the prospective sale to Bain Capital.
Although their application was denied, the judge reaffirmed bondholders’ right to propose a new deed of company arrangement (DOCA) at the creditors’ meeting on August 22.
“Whatever the administrators (Deloitte) may have conveyed to the applicants (bondholders Broad Peak and Tor), there is no doubt that the applicants have the ability at the next meeting of creditors to propose a DOCA,” said the judgment.
He went on to say that denying the bondholders access to confidential details of the deal now should not impede their endeavour, in light of the fact Deloitte was still required to provide sufficient information ahead of the creditors’ meeting.
Justice Middleton also sounded a warning to administrators that the sale process could be delayed or even terminated if they did not meet these obligations.
They get no right to see the detailed business case/proposal - just the top level the same as any registered creditor (you & I) are entitled to receive prior to the meeting...Thanks for sharing article.
I still fail to understand how & why these bondholders deserve to see Bain's final offer, even confidential details & match it to a large degree with basically a surprise offer at the creditors meeting on Aug 22. surprise that Bain don't know of Bondholders details offer.
What's stopping any other party coming in & doing same thing? Or is it only allowable to 'bondholders' this privliige?
Do Bain get to see this counteroffer before Aug 22nd??
I'm have no legal knowledge etc, but seems I wanna see yours, but I'm not showing you mine scenario!!
I have read that if all else fails, Bain has agreed to to buy the assets of the company.That same article in 'The Australian' at lunchtime on Wednesday 15 July also had this ominous warning for the administrators:
'...Barrister Ian Jackman also questioned the structure of the deal with Bain, given the administrators had suggested it could not be voted down by the creditors meeting.
“We are confused as to how the administrator, no doubt with advice, has come to the conclusion that it is a fait accompli and whatever happens at the second meeting can’t change the asset sale to Bain,” he said...'
Yep - that seems to the thrust of John Duries article today (paywalled in the Australian) so some important bits here:I have read that if all else fails, Bain has agreed to to buy the assets of the company.
Was always likely. Remember these bondholders (well at least those who haven't sold already) invested $2bn just over 6 months ago, admittedly at a high interest rate.because this is starting to look like the beginnings of a lawyers picnic.
I know what you mean.... And there is literally 5 more weeks for the bondholders to white ant through the media, create their own spin stories and disrupt the process as much as possible to get their story out there pre the meeting.I wish it was august 22 now. its starting to look like a bloody soap opera. And wish Bain would make a media conference to let every one know what they are doing.
Slight correction....Was always likely. Remember these bondholders (well at least those who haven't sold already) invested $2bn just over 6 months ago, admittedly at a high interest rate.
They are obviously interested in minimising any loss, particularly when they can get forced into the deal by other parties with different interests and outcomes.
They are just in a poor position with limited information.
that's for sure. the best thing for the new owners to do is to make it clear what there doing and be honest about it . not hiding behind closed doorsI know what you mean.... And there is literally 5 more weeks for the bondholders to white ant through the media, create their own spin stories and disrupt the process as much as possible to get their story out there pre the meeting.
Add to that, I expect there will be further / extended travel restrictions imposed that will impact on VA's ability to earn money due to the spread of the virus widening in Sydney....
If I was in Bain’s shoes I would wait it out, no need to tip my hand too early....and have the ability to sweeten the deal if needed.that's for sure. the best thing for the new owners to do is to make it clear what there doing and be honest about it . not hiding behind closed doors