The Virgin bond holders have effectively split into two camps - the retail holders and the financial holders - with the latter now fighting an ultimately unwinnable fight.
Voluntary administrator Vaughan Strawbridge has the right to sell the company to whomever he thinks will be positioned for all creditors.’
The fight over which deed of company arrangement wins the day at the October 6 creditors meeting is a sham, because the assets have already been sold to Bain.
The alternative bid says lets vote the issue at the meeting. But what happens if the first vote is to approve the Bain DOCA?
Granted that creditors should know about the second offer before voting on the first, but you can’t have two votes passing control of the same asset.
The financial bond holders are said to be running around looking for a new backer to add financial muscle to their bid.
Even if that happened, the process is doomed because the sale has already been made and the creditors vote is a sham.
The bond holders are simply making noise in the hope of getting a better deal to keep them quiet.
That much is known to Bain and Strawbridge, and once that is more widely known the bond holder bargaining position is weakened.
It would surprise if Federal Court Judge Justice John Middleton did anything but rubber stamp Strawbridge’s actions.