Branson’s Virgin Atlantic lands £1.2bn rescue deal

posted on 14th July 2020 by Eddie Saunders
Branson’s Virgin Atlantic lands £1.2bn rescue deal

Sir Richard Branson’s Virgin Atlantic Airways is close to unveiling a £1.2bn Sky News has reported. The rescue package will salvage thousands of British aviation jobs.

Sir Richard Branson’s Virgin Group will inject £200m in cash, while Davidson Kempner, a hedge fund, will lend the company £170m.

Virgin Group and Delta Air Lines, Virgin Atlantic’s two shareholders, will collectively defer approximately £400m of fees, with hundreds of millions of pounds more secured in the form of deferrals and advances from payments companies and aircraft lessors.

The backing of First Data, a subsidiary of Nasdaq-listed Fiserv, which had made onerous demands relating to cash collateral, is understood to have been secured in the last few hours, enabling the deal to go ahead, according to banking sources.