Realistically though would the bondholders have been able to inject cash immediately anyway?
Because as we just discovered, Deloitte flogged VA1 quick smart to Bain because they were outta cash - right NOW!
.... which happened reportedly because early in the piece one (or more) of its banks decided to hold onto all the cash in VA accounts held with them as 'potential security'.
Never said what the 'potential security' was for?
Could it have been 'cross-collateral' for credit card claims against VA on cards issued by that particular bank that just MIGHT have issued VA-focused ccs?
Good illustration of 'never have all your eggs in one basket' - as when it hits the fans some big banks have a long history of acting first & then looking at the legality at a later date.
Anybody remember the Swiss Franc loans debacle?
2) Was nearly knocked down with a feather earlier today.....
I came across the FIRST accurate article about VA's debt and bondholders. I know, at first I thought I must have been sniffing the tea-bags - but no, the article made the clear distinction of secured vs unsecured debt holders.
Now, I'm sure everybody will immediately be wanting to subscribe to this obviously first class rarity of extremely accurate Financial source. You'd be disappointed - it is not a Finance site.
Perhaps some Govt regulatory site? No.
Credit ratings agency? No.
Trash newspapers? No.
Old article I forgot I'd created? No.
Travel blog? Yes, you guessed it. Leave it to a points chasing blog writer to get the detail correct (I wonder how they do with lotto numbers?).
The sale of
Virgin Australia is entering the final stages. We take a look at where things are at and what this means for Velocity members.
www.pointhacks.com.au
...eleventh-hour rival bid from unsecured bondholders ...
The successful bidder will need to get the majority of creditor votes, both in terms of number as well as by value. The 9,000 strong staff of Virgin hold the majority in the former, while bondholders, mostly secured, have the majority in the latter.
For a concise summary of close to every interesting aspect of the VA VA status - worth reading.