Former Jetstar boss Jayne Hrdlicka is believed to be working with Bain Capital on a potential tilt at the collapsed airline Virgin Australia in what is the latest high profile name to emerge around the airline.
Bain Capital’s interest comes as Oaktree Capital Management and BGH Capital, backed by former TPG Capital executive Ben Gray and Macquarie investment bank boss Robin Bishop, also consider a way to recapitalise Virgin Australia, while Apollo Global Management may also be in the mix.
Macquarie Group and Perth-based conglomerate Wesfarmers are also thought to be watching the situation that could see the airline emerge from voluntary administration in a new form.
Ms Hrdlicka was previously an executive at Bain & Co in the US and in Australia before becoming a senior executive at Qantas.
She was appointed chief executive of Jetstar in 2012, running the Qantas-owned low-cost carrier until 2018.
Some suspected she was in line to take the top job at Qantas but instead took on the role running the A2 Milk Company until last year.
It is said that a major global private equity fund is working with an international airline on a potential recapitalisation, but it is unclear whether Bain Capital is the party involved or it is another.
Sources say that the situation remains fluid with respect to the formation of consortia.
Other high-profile names to involve themselves in a Virgin Australia recapitalisation are former Macquarie Group boss Nicholas Moore who is working as a government adviser, while former UBS Australia boss Matthew Grounds has been advising the federal Treasurer’s office, according to sources, and his former offsider Guy Fowler is understood to have a role with Virgin.
Working as administrator of the airline is Deloitte, while Houlihan Lokey is providing restructuring advice on its $5bn-odd debt pile.
Earlier, Virgin Australia counted UBS as its adviser, while Morgan Stanley has also undertaken work for the airline.
Sources say that 14 parties are believed to be interested in Virgin Australia, for which bids are due in four weeks’ time.
A flyer document has already hit the desks of prospective suitors.
The challenge for any party conducting due diligence on the asset with a view of putting forward a proposal is taking a punt on how fast air traffic volumes will return.
A key factor in any approach will be establishing how many leased planes to return to the aircraft lessors.
Private equity firms would be interested in Virgin Australia if they can secure the airline at a discounted price, say experts, but many are put off by the high operating costs and operating risk.
However, any private equity firm that can get a deal right could be in for a major windfall, as TPG Capital proved through its major investment in the bankrupt Continental Airlines in 1993.
Many believe that TPG Capital would almost certainly turn up for at least a look at Virgin Australia.
Elsewhere, Speedcast on Thursday confirmed it had entered Chapter 11 bankruptcy, as flagged by DataRoom earlier in the week.
The company told the market that it had received a $90m lifeline from lenders to enable it to overcome its near-term headwinds.
Speedcast said it was not yet clear if any value would be retained by shareholders.
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