IndiGo's largest shareholder company and Rahul Bhatia-led InterGlobe Enterprises has announced it has signed an agreement to participate in the Virgin Australia sale. "As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage," InterGlobe Enterprises said in a statement, reported ANI.
As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage: InterGlobe Enterprises pic.twitter.com/7uXPcMfsATANI (@ANI) May 15, 2020
Notably, Virgin Australia, the second-largest Australian carrier, announced bankruptcy on April 21 in the wake of the coronavirus pandemic, thereby putting around 16,000 jobs at risk. Bhatia's InterGlobe owns 37.87 per cent in IndiGo, while Rakesh Gangwal, his family members and his family trust own 36.64 per cent in India's largest airline.
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Cash-strapped Virgin Australia had appointed Vaughan Strawbridge of Deloitte as a voluntary administrator to lead a sales process after the Australian government rejected its plea for A$1.4 billion loan. More than 10 parties have reportedly expressed interest in recapitalising Virgin.
Virgin employs 10,000 people directly and 6,000 people indirectly. It competes with larger rival Qantas Airways Ltd, which would have a virtual monopoly in Australia if Virgin stopped flying.
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