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Cyrus Pulls Virgin Australia Bid Leaving Bain Sole Suitor

Angus Whitley
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Cyrus Pulls Virgin Australia Bid Leaving Bain Sole Suitor

(Bloomberg) -- Cyrus Capital Partners LP withdrew its offer for Virgin Australia Holdings Ltd. in an extraordinary attack on the sale process, leaving Bain Capital LP as the only bidder for the collapsed airline.

In a statement, Cyrus said it pulled its bid due to a “lack of engagement” by the airline’s administrators Deloitte since the U.S. investment group submitted its proposal on June 22.

“The administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer,” Cyrus said. An improved bid submitted on June 25 “received no response other than an acknowledgment of receipt.”

Bain Capital and Deloitte are preparing to sign a deal early Friday, according to the Australian Financial Review. A spokesman for Deloitte didn’t return a call seeking comment on Cyrus’s statement.

Virgin collapsed in April under A$6.8 billion ($4.7 billion) of debt after the government declined to step in. According to Deloitte, both Cyrus and Bain planned to operate a “smaller, single-branded domestic and short-haul international airline that also has growth potential.”

Final Virgin Australia Bids a Key Test for Ailing Airlines

The two bidders already have approval from Australia’s Foreign Investment Review Board, Deloitte has said.

In its statement, Cyrus said it “would be willing to re-instate our offer if the administrators agree to re-engage in good faith.”

(Adds report that Bain will sign deal Friday in third paragraph)

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