InterGlobe Enterprises mulls Virgin Australia Bid By Investing.com


© Reuters.

By Gina Lee

Investing.com – Rahul Bhatia, a majority shareholder of Indian budget carrier IndiGo, is considering joining the line of potential buyers for Virgin Australia.

Bhatia holds the IndiGo share through InterGlobe Enterprises Ltd, which is preparing a bid proposal.

At least 20 potential buyers have expressed interest in the distressed airline, as its administrator Deloitte seeks indicative bids by Friday, binding offers by June and to wrap the sale up by the end of June.

Virgin Australia owed AUD 6.84 billion ($4.45 billion) to more than 10,000 creditors at the time of its collapse. It was hit hard by COVID-19 lockdowns shutting down travel and reducing revenue.

The airline had requested an AUD 1.4 billion ($910.95 million) bailout from the Australian government at the end of March as it attempted to tackle its debt. Its much larger rival Qantas then demanded a loan of AUD 4.2 billion to “level the playing field.”

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