Cyrus Capital Partners, one of the final two bidders in the race to buy Virgin Australia, has withdrawn its bid for the crippled airline. The firm mentioned that a lack of engagement from the airline’s administrator Deloitte was enough reason to drop out.
In this mornings statement, Cyrus’s founder and chief investment officer Stephen Freidheim said he was “disappointed that it has become necessary to withdraw our offer.”
The surprise decision came only days before administrators were set to announce the successful bidder and new owner of Virgin Australia, including its regional subsidiary and Velocity Frequent Flyer.
In a statement, Cyrus Capital said Deloitte failed to return their calls, “On the morning of 22 June 2020, Cyrus presented to the administrators of Virgin Australia Holdings an offer to acquire the airline,” “However, since then, the administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer.”
Further to this, the firm said yesterday morning it submitted additional “value improvements” in an effort to sweeten the deal. Despite this, the firm is yet to hear receive a response from the administrators, apart from an acknowledgement that the message was received.
However, Freidheim did say that Cyrus is prepared to reinstate their offer “if the administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders.”