Virgin Australia's administrators have entered into a sale agreement with Bain Capital, after its private equity rival Cyrus Capital Partners withdrew its offer this morning.Bain's private equity rival Cyrus Capital Partners withdrew its bid for Virgin Australia this morning, citing a lack of engagement from the airline's administrators.

Cyrus, along with Bain Capital, was one of two final bidders for Virgin, which went into administration in early April.

However, major bondholders, who stand to lose a large part of their $2 billion investment in Virgin as a result of its collapse, are preparing a last-minute buyout proposal to try and gazump the private equity bidders.

While they are not an official bidder, the group of bondholders wrote to Deloitte this week with an offer to inject $1 billion in cash.
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Bain Capital is the new owner of Virgin Australia, following this morning's shock withdrawal of challenger Cyrus Capital.In a statement issued this morning, administrator Deloitte confirmed it has "now entered into a Sale and Implementation Deed with Bain Capital which will result in the sale and recapitalisation of the businesses of (the Virgin Australia Group)."

Deloitte notes that "no return to shareholders is anticipated. At this stage, it is not possible to determine the estimated return to creditors however an update will be provided ahead of the second meeting of creditors."

Bain Capital says it is committed to protecting as many Virgin Australia jobs as possible, will "invest in and see closer integration of Virgin Australia and the Velocity program", and also honour all all existing travel credits.

Staff who remain with the airline will be offered the chance to be part of an "employee ownership / profit sharing scheme," while those who are let go will see their entitlements fully funded.
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