'When Virgin flies again, it will fly from Queensland': Treasurer
The Queensland government has struck a deal with Virgin Australia's anointed new owner to keep its headquarters in Brisbane.
Virgin administrator Deloitte agreed to sell the bankrupt airline to American private equity giant Bain Capital on Friday morning, after rival bidder Cyrus Capital Partners withdrew its rescue offer.
Queensland Treasurer Cameron Dick said Virgin headquarters would remain in Brisbane. Credit:Getty
Queensland Treasurer Cameron Dick said while the ink was yet to dry on the deal which would need to be approved by creditors in August, it was a "great day for Queensland".
"We haven't taken off yet but we are at the end of the runway and we are ready to take off," he said.
“It means when Virgin flies again, it will fly from Queensland.
"There is a little bit of water to flow under the bridge yet but Queensland is in absolutely the box position to ensure Virgin stay in our state."
Virgin’s Brisbane headquarters has 1200 workers and there are 5000 employees across Queensland.
Mr Dick said he could not "sugar-coat it" and did not know how many Virgin staff would go in the takeover.
"We do not know what the exact form of Virgin will look like once the transaction is completed, it may be a different airline, it might be a smaller airline than the one that existed," he said.
"But this is the best possible deal we could get to secure as many jobs as possible for Queensland."
Mr Dick was still keeping "the maroon cards close to the chest" until the deal was done but said the government-owned investment company was "looking to take an equity stake and provide other incentives to ensure Virgin stays in Queensland".
"We are so pleased that the Queensland maroons have beaten the New South Wales blues yet again," he said.
"We know just last weekend NSW put in a last-minute bid to try and snatch Virgin from Queensland.
"I am so pleased that Victoria, that wanted to relocate Virgin, and NSW, that wanted to relocate Virgin, were not successful."
Mr Dick said the Queensland Investment Corporation had "stuck to the parameters put forward originally and that was to commit up to $200 million".
Virgin went into voluntary administration in April with debts of $6.8 billion, setting off a months-long sale process.
The sale could also still be upended by a late intervention from Virgin’s unsecured bondholders who have presented a proposal to take control and recapitalise the airline.
At the creditors meeting in August, Deloitte will have to measure Bain's offer with that from the bondholders to consider the rights of all creditors.
Sources close to the dealings say the Bain offer has little in the way of a payout for bondholders who are owed $2 billion.
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