Virgin’s bondholders are joining forces to ensure they have a louder voice in any sale of the failed airline.

Having someone to bring everyone together will be a lot more powerful and well hopefully get the right outcome, one debt investor said, noting there wasnt any urgency to get the group finalised ahead of this Thursdays creditor meeting.
It makes more sense that everyone is on the same page … which is hard because everyone has a different valuation.
FIIG Securities is among the largest local holders, a source said.
A FIIG spokesman confirmed they held Virgin bonds, adding that the company expected this would be a three- to four-month process and that many discussions were taking place.
Sources said the group had been holding phone hook-ups, which covered topics ranging from the mechanics of an administration process through to how best to represent the retail holders. One option could be through trustee Sargon, a source said.
One debt investor said he was concerned that private equity could buy the airline on the cheap, particularly if the government is keen for a quick outcome.
He stressed the importance of bondholders receiving a fair outcome, saying the 10 cents in the dollar that creditors were likely to receive was an unacceptable option.
He said he would prefer to see the company go into liquidation than be sold for a price which paid creditors so little.
Nomura credit analysts have estimated recovery value on Virgins senior unsecured debt is about 20 per cent to 25 per cent under a recapitalisation scenario, assuming new equity investors believe a multiple of about five times could be applied to the airline, as well as shutting down its international flights business and cutting fleet sizes and staff.
The five times enterprise value to earnings before interest, tax, depreciation and amortisation multiple indicated a going concern enterprise value of $2.3 billion, based on average exit multiples.
Under the analysts liquidation scenario, only 10 per cent or so would be recovered.
Virgin administrator Deloitte, which held a call with some bondholders on Friday, has engaged a US law firm Akin Gump Strauss Hauer and Feld to deal with the bondholders, many of which are based in the United States.