Coronavirus: Virgin Atlantic finalises £1.2bn rescue deal

15 Jul 2020 10:35 AM
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Troubled airline Virgin Atlantic has finalised a rescue deal worth £1.2bn that should protect thousands of jobs.

Sir Richard Branson's Virgin Group will inject £200m, with additional funds supplied by investors and creditors.
The billionaire Virgin boss had a request for government money rejected, leaving the airline in a race against time to secure new investment, BBC reported.

Virgin Atlantic is cutting 3,500 staff, however the airline said the rest of the 6,500 jobs should be secure.

The offer includes funding from US hedge fund Davidson Kempner Capital Management, and the postponement around £450m in payments to creditors. Virgin Group owns 51% of the airline, with the others held by US carrier Delta Air Lines.

Virgin Atlantic said the refinancing covered the next five years and paved just how for this to rebuild its balance sheet and go back to profitability in 2022.