Bain won out over Cyrus Capital Partners, a New York-based investment firm, which had also submitted a binding offer.
“Several proposals from other interested parties” were also submitted this week, including a proposal by some of the airline’s bondholders, according to the administrators.
Bain Capital says it wants to “protect as many jobs as possible” at Virgin Australia while supporting the airline’s “unique culture.” The airline employs about 10,000 people.
“We are determined to see that Australians have access to competitive, viable aviation services for the long-term,” wrote Mike Murphy, a managing director of Bain Capital, in a statement. He added that Bain will strengthen Virgin’s “regional services” while continuing to offer flights for business and leisure travelers.
Josh Bayliss, CEO of the Virgin Group, said he intends to “work directly with Bain and closely with the administrator and management to finalize the recovery plan and bring Virgin Australia out of administration in the strongest form possible.”
“Time is now of the utmost importance, and we cannot afford delay in getting the company back in the air for the benefit of its customers, its employees and the wider Australian economy,” he added.
While federal authorities in Australia have declined to provide a direct bailout for Virgin Australia, they have stressed the importance of the carrier’s survival.
Virgin Australia’s administrators said Friday that the deal would likely face “minimal” regulatory scrutiny.
Bain has already received preliminary regulatory approval from Australia’s treasurer, and is now proceeding with the airline for its restructuring and eventual sale, administrators said.
— Angus Watson contributed to this report.