Virgin Australia's unsecured creditors to get 9%-13% return

Under Bain's business plan, Virgin plans to cut a third of its workforce as part of an overhaul to focus on being a domestic and short-haul international Boeing Co 737 operator competing against Qantas Airways Ltd.

SYDNEY: Virgin Australia Holdings Ltd's unsecured creditors will receive an average return of 9%-13% of their funds as part of U.S. private equity group Bain Capital's proposed purchase of the airline, administrator Deloitte said in a report on Tuesday.

The unsecured creditors include 6,500 bondholders who are owed A$2 billion ($1.43 billion) by the country's second-biggest airline and will receive a return of 8.9% to 13.3%, less than the 14.4% return for critical suppliers.