Shock as potential Virgin buyer backs out
American firm Bain Capital is set to become the new owner of Virgin Australia after rival bidder Cyrus bowed out in a surprise move.
Cyrus, a New York-based hedge fund, said in a statement this morning it would withdraw its bid for Virgin Australia "due to lack of engagement" by the airline's administrator, Deloitte's Vaughan Strawbridge.
Cyrus said it had not heard from Mr Strawbridge since it lodged its formal binding offer for the airline on Monday, The Australian reported.
Its decision leaves private equity firm Bain Capital poised to be named today as preferred bidder for the bankrupt airline.
Virgin Australia went into administration in April with close to $7 billion owed to creditors.
More to come.