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Two large unsecured creditors of Virgin Australia (ASX: VAH) have called on the Takeovers Panel to intervene in the acquisition of the airline from US-based Bain Capital, describing the sale process undertaken by Deloitte as "unacceptable".
Bondholders Broad Peak Investment Advisers and Tor Investment Management, from Singapore and Hong Kong respectively, have criticised Deloitte's deed of company arrangement (DOCA) reached for Virgin with Bain.
"The Applicants submit, among other things, that certain circumstances regarding the process conducted by the Administrators are unacceptable and have the effect of precluding an alternative DOCA being presented to VAH's creditors at the second creditors' meeting," the Takeovers Panel reported in a release.
"The Applicants seek interim orders regarding access to information including to the terms of the Bain proposed transaction.
"The Applicants seek final orders including orders to enable the Applicants to make an alternative proposal."
A sitting panel has not yet been appointed in response to the submission, and the Takeovers Panel has not made a decision about whether to conduct proceedings.
The call for an intervention comes after last week's announcement from Deloitte that it did not expect there would be sufficient recoveries to repay creditors in full.
"We declare that we have reasonable grounds to believe that there is no likelihood that shareholders of VAH will receive any distribution for their shares," the administrators said.
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