Virgin Australia's bondholders are fighting to torpedo the airline's sale to US private equity outfit Bain Capital, asking the Takeovers Panel – the national forum for resolving disputes surrounding corporate acquisitions – to intervene in the process on their behalf.

The airline owed about 6000 bondholders close to $2 billion when it fell into administration amid the COVID-19 pandemic in late April. However, despite the size of the group and their debt relative to the airline's other creditors, these debts are unsecured, prompting fears they will see little to no return for their instruments.