Bain Capital to take over Virgin Australia as rival bidder bails

American firm Bain Capital will take over Virgin Australia after rival bidder Cyrus Capital Partners withdrew its offer.

New York-based hedge fund Cyrus said its decision to withdraw was “due to lack of engagement” by the airline’s administrator, Deloitte’s Vaughan Strawbridge who “have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer”.

Cyrus said it had not had any contact with Strawbridge since it lodged its formal binding offer for the bankrupt airline on Monday.

“Cyrus firmly believes that the Australian aviation industry has a bright future and would be willing to reinstate our offer if the Administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders,” said Cyrus founder Stephen Freidheim.

Private equity firm Bain Capital has now been named as the successful bidder for the airline which went into administration owing close to $7 billion.