Virgin Australia bidders get 10-day extension for final offers, source says

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FILE PHOTO: Travellers stand at a Virgin Australia Airlines counter at Kingsford Smith International Airport during the coronavirus outbreak, in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott/File Photo

SYDNEY (Reuters) – Virgin Australia Holdings Ltd’s administrator has given final bidders Bain Capital and Cyrus Capital Partners until June 22 to lodge binding offers, an extension of 10 days from the original date, a person with knowledge of the matter said on Wednesday.

The additional time will allow the bidders to refine their final offers, the source told Reuters on condition of anonymity, adding that the administrator, Deloitte, was still seeking a binding deal with the winner by June 30.

Deloitte declined to comment.

Virgin owed creditors nearly A$7 billion ($4.86 billion) when it entered voluntary administration in April, with its long-running financial struggles exacerbated by the coronavirus pandemic.

The next phase for the parties on the final shortlist will include further engagement with stakeholders and aircraft financiers as they seek pacts on future terms before binding bids are received, Deloitte has said.

($1=1.4413 Australian dollars)

Reporting by Paulina Duran and Jamie Freed; Editing by Clarence Fernandez

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