Virgin Atlantic to unveil £1.2bn investor rescue package

Virgin Atlantic (Image: The Aviation Media Agency)
Virgin Atlantic (Image: The Aviation Media Agency)

Sources close to Virgin Group, which owns Virgin Atlantic, have said that Virgin Atlantic is set to announce a resuce package worth £1.2bn later today.

According to the sources, the money is coming from stakeholders and investors already involved with the airline and will involve a restructuring of the airline under the new government reforms designed to make this easier.

Approximately £370m of the package will be coming from Sir Richard Branson and New-York based hedge fund, Davidson-Kempner.

Virgin Group and Delta Airlines, the two biggest shareholders in Virgin Atlantic, will also be be securing large parts of the deal through deferrals and refinancing.

“We have taken painful measures, but we have accomplished what many thought impossible,” said Virgin Atlantic chief executive Shai Weiss. “The last six months have been the toughest we have faced in our 36-year history.”

Virgin Atlantic is curing 3,500 jobs but said that the refinancing deal will secure the remaining 6,000 strong workforce.