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Virgin Australia creditors approve $2.6bn sale to Bain

Deal wipes out existing shareholders, including Singapore Airlines and HNA

U.S. private equity firm Bain Capital is expected to complete its takeover of Virgin Australia by Oct. 31.    © Reuters

SYDNEY -- Creditors of insolvent carrier Virgin Australia have backed a $2.6 billion buyout offer from U.S. private equity firm Bain Capital that will keep the airline running and help them recover part of the debts they are owed.

The Australian airline's administrators on Friday said a creditors' meeting had accepted the deeds of the company arrangement formalizing the sale to Bain for 3.5 billion Australian dollars ($2.55 billion). The favorable response had been expected after the union representing the bulk of Virgin's workers threw its support behind the proposal to revive the stricken carrier.

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