The Administrator of the Virgin Australia Group has issued its long-awaited report on the airline’s financial affairs recommending the A$3.5 billion proposal from New York based Bain Capital for creditors to ratify on September 4. The Bain Deeds of Company Arrangement (DOCA), valued at A$3.50 billion, ensures all employee entitlements are paid in full, customer travel credits are honored, a number of supply and finance arrangements such as aircraft leases continue, and unsecured creditors receive a return of between $462 million and $612 million, which is between 9 and 13 cents in the dollar. But there will be no return to shareholders which include Singapore Airlines and Etihad Airways but 6000 of the 9000 staff will retain their jobs. Billions and billions of stars from spaceship 747 SUBSCRIBE to enhanced safety ratings including COVID-19 ratings   Virgin Australia went into administration on April 21, owing almost $7 billion to more than 12,000 creditors. Joint Voluntary Administrator Vaughan Strawbridge, Deloitte, said that the DOCA results in the best outcome for creditors and will secure the future of the Virgin Australia Group as it emerges from voluntary administration. “We have set out our opinion to creditors that it is in their interest to approve the deed of company arrangement proposed by Bain Capital as it provides for the best return to creditors in what are extraordinary circumstances, and that were impossible to foresee,” said Mr Strawbridge. “This will provide certainty for the business under new and committed owners. It provides certainty for employees and customers, a return to creditors, and it can be completed sooner, and at less cost than other alternatives. “It achieves all the objectives of the voluntary administration process that we sought from the outset. Now we just need to bring the airline out of administration as soon as possible.” At the second meeting of creditors, the creditors will be asked to decide to either: 1. Accept deeds of company arrangements (DOCAs) as proposed by BC Hart Aggregator, LP (Bain); or 2. Return the company to the control of the directors; or 3. Put the companies into liquidation. The Administrators signed a binding agreement for the sale of the business to Bain Capital on June 26, 2020.