Tuesday’s court action comes after it was revealed on Monday that Broad Peak and Hong Kong-based bondholder Tor Investment Management have applied to the Takeovers Panel to intervene in the sale to Bain, arguing the way Deloitte ran the administration was “unacceptable” and blocked them from presenting their alternative deal to creditors at the second creditors’ meeting in August.
Broad Peak’s legal action is seeking a variation to the court’s non-publication order over the Bain deal so that Broad Peak, the Takeovers Panel and any party involved in the Takeovers Panel’s proceedings can access the documents.
The bondholder group is being advised by boutique Sydney firm Faraday Associates and lawyers from Corrs Chambers Westgarth. The group’s debt-for-equity plan involved pouring $925 million into Virgin to keep the company alive and listed on the Australian Securities Exchange.
Virgin’s $2 billion worth of unsecured bonds are owned by 30 large institutional investors and about 6000 “mum and dad” retail investors. Broad Peak is backed by Singapore’s sovereign wealth fund Temasek, which held an interest in Virgin through its majority ownership of Singapore Airlines, which in turn owned 20 per cent of Virgin.