Virgin Australia Holdings Limited (ASX:VAH) administrator Vaughan Strawbridge, of Deloitte, is playing a knife-edge game of keeping a lot of people in the room until the real action starts on June 12, 2020 when the final two bidders are selected. The potential bidders are not allowed to speak to the asset owners until after June 12, 2020 so time is limited and Virgin's working capital resources are also constrained. Brookfield Business Partners L.P. (NYSE:BBU) pulled out of the process after it was not selected in the first round, but Oaktree Capital Management, L.P. is teamed up with US airline investor Indigo Partners LLC.

Oaktree, like separate bidder Cyrus Capital Partners, L.P., specialises in distressed debt. Bain Capital, LP is the fourth contender and a serious player, with KordaMentha in the background. When the parties are narrowed to two they will be free to negotiate deals with some of the lease holders to knock out bad contracts, before a final deal.