Sir Richard Branson secures £1.2bn rescue deal for Virgin Atlantic
Troubled airline Virgin Atlantic has finalised a rescue deal worth £1.2bn that should protect thousands of jobs.
Virgin Group owner and British entrepreneur Sir Richard Branson will inject £200m of his own money, along with additional funding provided from its current investors.
In the early weeks of the COVID-19 enforced lockdown, Branson requested the government bailout hte firm and even put his Caribbean island up as collateral.
The government rejected his plea, which left the company seeking new investment to save it from collapse.
Today’s deal includes funding from US hedge fund Davidson Kempner Capital Management, and the postponement of about £450m in payments to creditors.
Chief Executive of Virgin Atlantic Shai Weiss commented: “We have taken painful measures, but we have accomplished what many thought impossible. The last six months have been the toughest we have faced in our 36-year history.”