Virgin Australia (ASX:VAH) bidders shortlisted

• Virgin Australia (VAH) has taken the next steps to survive COVID-19 and moved to a bidder shortlist
• The airline is looking for a new owner to bring it out of voluntary suspension and has shortlisted a small number of parties to be invited into the next stage of the process
• The parties are unnamed due to confidentiality, however, Virgin says every party has cash behind them with aviation experience
• Virgin says each party has a plan for the business and can secure the future for thousands of Virgin Australia employees
• The company will work with the parties over the next month to enable biding offers by mid-June
• Virgin Australia has been untouched on the market since early April, with last trade at 8.6 cents per share

Virgin Australia (VAH) has taken the next steps to survive COVID-19 and moved to a bidder shortlist.

The airline is looking for a new owner to bring it out of voluntary suspension and has shortlisted a small number of parties to be invited into the next stage of the process.

Lead Partner for the Administrators Vaughan Strawbridge said he is delighted by the strength of the shortlist. The parties selected are well-funded and have aviation experience.

“The parties have also worked constructively with the administration process and put forward credible indicative bids. Importantly, each has a plan for the business which can secure the future for thousands of Virgin Australia employees,” he said.

These parties will allow Virgin to continue as one of Australia’s largest operating airlines.

“The process we have undertaken is an expedited sale process encouraging strong competition for these valuable assets, but one that is necessary to ensure the business is restructured as soon as possible so that it can remain a competitive force in the market and begin more normal operations as soon as COVID-19
restrictions allow,” Vaughan explained.

Virgin said it has received more interest than anticipated from parties who are eager to be involved in the future of Virgin Australia.

The company cannot name the invited parties due to confidentiality but will work with them over the next month to enable biding offers by mid-June.

“We understand some parties will be disappointed that they have not been invited to continue their interest and we hope they will respect our decision which is predicated on the business continuing and achieving the best outcome for all people impacted,” Vaughan said.

“We are very excited about embarking on the next phase of the sale process and working with the shortlisted parties to see Virgin Australia restructured and come out of voluntary administration in a strong and sustainable position,” he added.

Virgin Australia has been untouched on the market since early April, with last trade at 8.6 cents per share.