News: VAH Virgin Australia bondholders lodge rival proposal with administrator, says source

SYDNEY, June 24 (Reuters) - Virgin Australia Holdings Ltd (VAH) bondholders lodged a recapitalisation proposal with the airline's administrator on Wednesday, rivaling bids from Bain Capital and Cyrus Capital Partners, according to a person with knowledge of the matter.

The proposal involves a debt-to-equity swap among bondholders owed around A$2 billion ($1.39 billion) plus a fresh capital injection of around A$1 billion, said the person, who was not authorised to speak publicly.

Virgin Australia would remain a listed entity as part of the plan, which would allow bondholders to recoup around 70 cents on the dollar of their investment, the person added.

Virgin Australia's administrator, Deloitte, declined to comment. ($1 = 1.4422 Australian dollars)