Terry McCrann: Takeovers Panel has no right to interfere in Virgin Australia’s administration
Why is the Takeovers Panel taking so long to throw out an application by Virgin Australia bondholders to stymie its buyout when it has no jurisdiction, asks Terry McCrann.
Terry McCrann
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Knock, knock, is anyone awake — to stress, “awake” not “woke” — down at the Takeovers Panel?
On Monday, two groups of Virgin bondholders demanded the Panel interfere in the decision by the administrator of the failed airline to keep it flying and at least 4000 jobs alive by doing a deal with a Bain-led investor group. The application was ridiculous (if understandable in its desperation). The Panel has no right to interfere in company administrations; they have absolutely nothing to do with takeovers under the Corporations Law.
That’s, importantly, keep it flying now, as well as longer term — albeit in a permanently much-reduced (at least halved) state.
The Panel should have thrown the application out immediately. Apart from entertaining an absurd extension of its regulatory role, it is acting grossly irresponsibly in leaving uncertainty hanging over Virgin and the deal.
The Panel is not only playing with fire but the lives of 9000 Virgin workers.
Deloitte made its decision to go with Bain after considering the bondholder proposal. The Panel surely can’t be that dozy it thinks it can take its usual 1-2 weeks to “ponder” whether to reject the application.