Bain Capital, an American private investment firm, made a step further in the saga of Virgin Australia Airlines reorganization process. The Federal Court of Australia granted an application by administrators Deloitte to complete the airline’s takeover.

In the order released on November 10, 2020, the Federal Court of Australia approved the transfer of all Virgin Australia’s shares to Bain Capital or its nominee. The Court’s decision brought Bain Capital closer to the ownership takeover of the beleaguered airline. 

The application for Virgin Australia’s share transfer was made by the airline’s administrators in order to ensure “a fair prejudice to the major shareholders” of the company after the transfer completion. The five major Virgin Australia’s shareholders including Etihad Airways, Singapore Airlines (SIA1) (SINGY), Nanshan Group, HNA Group, and Virgin Group own almost 90% of the airline’s equity.

The Court’s order outlined that the private equity firm’s takeover of Virgin (VAH) “via a deed of company arrangement (DOCA) remains subject to further conditions precedent, which will be satisfied on or before completion of the transaction“. Following the document, the transfer of all the shares to Bain Capital will come into effect on November 17, 2020.

Virgin Australia entered voluntary administration at the height of the COVID-19 crisis announcing deep reorganization with a focus on domestic flights in April 2020. Bain Capital took over the firm in early September 2020.