Virgin bondholders underwrite cap raising; BoA nabs IDP stake; Ansarada bids due

Virgin Australia's bondholders, $2 billion deep and worried they're set to lose the lot, landed with a splash on Wednesday morning.

After about a fortnight in the data room, the bondholders lobbed a surprising proposal: give all creditors a haircut, convert bonds and other debt where possible into shares, and relist the company on the ASX. Have Paul Scurrah and his team run it, and maximise its footprint.

And recapitalise the company with a $1 billion-odd capital injection. Street Talk has the details on what that injection would look like.

It's up to Deloitte to decide what's next. It has two fully worked offers from private equity types, and the proposal from the bondholders. There's sure to be another twist or two left in the tale.

Elsewhere, Bank of America nabbed a $220 million block trade on Wednesday night, while fundies are fuming about Freedom Foods' wild day.

Happy reading,
Sarah Thompson, Anthony Macdonald and Tim Boyd
Street Talk Editors