SYDNEY (Reuters) - Virgin Australia Holdings Ltd's (AX:VAH) creditors on Friday approved the purchase of Australia's second-biggest airline by U.S. private equity group Bain Capital, according to a statement from the Transport Workers' Union.
The union, representing some of Virgin's 9,000 employees, said it welcomed approval of the deal, which will allow the carrier to exit voluntary administration.
A Virgin spokesman did not respond immediately to a request for comment.
Virgin entered administration in April owing A$7 billion (3.84 billion pounds) to creditors after suffering from a sharp plunge in demand because of the coronavirus pandemic.
The Bain deal will give unsecured creditors a return of 9% to 13% of their investment and involves a financial commitment of A$3.5 billion, according to administrator Deloitte.
Under Bain's business plan, Virgin plans to cut a third of its workforce as part of an overhaul to focus on being a domestic and short-haul international Boeing Co (N:BA) 737 operator competing against Qantas Airways Ltd (AX:QAN).
