InterGlobe Enterprises confirms interest in buying out Virgin Australia

Virgin Australia, co-founded by British businessman Richard Branson, had filed for bankruptcy in April after its request to the Australian government for financial aid was turned down.

InterGlobe Enterprises, the parent company of India’s largest airline IndiGo, confirmed its interest in buying out Virgin Australia on Friday in a dramatic reversal of its stand barely four days ago.

The disruption caused by Covid-19 had worsened Virgin Australia’s already poor financial condition, including a debt of 4.2 billion dollars. (Bloomberg file photo)

“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,” the company said in a statement. “We are unable to say anything further at this stage,” it added.

On May 11, the company had informed stock exchanges in regulatory filings in response to media reports: “We deny the contents of these reports and would like to clarify that the company has not formulated any indicative proposal, nor does it have any interest in this matter.”

Virgin Australia, co-founded by British businessman Richard Branson, had filed for bankruptcy in April after its request to the Australian government for financial aid was turned down.

The disruption caused by Covid-19 had worsened its already poor financial condition, including a debt of 4.2 billion dollars.