Virgin Australia Holdings Limited creditors approve DOCAs

6 September, 2020

Virgin Australia Holdings Limited announced (04-Sep-2020) creditors accepted 10 separate deeds of company arrangement (DOCA) covering all 41 of the entitles in voluntary administration as proposed by BC Hart Aggregator LP (Bain Capital). It was the Administrators opinion that approving the DOCAs was in the best interest of all creditors. The DOCAs will be signed and completed within 15 days from 04-Sep-2020. The Bain Capital DOCAs, now formally approved by creditors, provides for:

  • Unsecured creditors receiving between 13 and nine cents in the dollar for their claims, from a pool of funds between AUD462 million (USD336.6 million) and AUD612 million (USD445.9 million);
  • The value of all customer travel credits and prepaid services provided post administration;
  • Continued employment for the majority of employees and entitlements paid in full, including for those leaving the business;
  • Continuation of the Velocity Frequent Flyer programme;
  • Retention of aircraft equipment;
  • Interim funding and acceptance of economic risk by Bain from 01-Jul-2020.

Once the DOCAs are signed, the Administrators will make an application to Australia's Federal Court for the transfer of the shares in Virgin Australia Holdings Limited to Bain Capital. The DOCAs cannot be successfully completed until the court approves the share transfer, which is expected to be complete by 31-Oct-2020. [more - original PR]