Virgin Atlantic (VS, London Heathrow) is negotiating with shareholders and creditors to obtain further support worth GBP160 million pounds (USD222 million), six months after securing its earlier GBP1.2 billion (USD1.67 billion) rescue deal.
Most of the sum being sought, about GBP100 million (USD139 million), will be in the form of a loan from Virgin Group, an airline spokeswoman told Sky News on March 13, adding that the financing was meant as part of a package to sustain the carrier ahead of an anticipated reopening of international travel in the months ahead.
The other GBP60 million (USD83 million) would come from debt repayment deferrals, sources revealed.
“This latest financing provides further resilience against a slower revenue recovery in 2021,” the spokeswoman said.
The British government has already ruled out a return to international travel in time for the Easter holiday period. The sources told Sky News that Virgin Atlantic’s creditors had been supportive of the proposal, as it would provide additional room for manoeuvre if the resumption of flights is further delayed.
The fresh funds, the spokeswoman divulged, would “follow a USD230 million financing on two Boeing B787s in January, which allowed us to pay down debt and strengthen our cash position. We remain confident that Virgin Atlantic will emerge a sustainably profitable airline and would like to thank our creditors and shareholders, Virgin Group and Delta Air Lines, for their ongoing support and unwavering belief in our future.”
As previously reported, Virgin Atlantic finalised a deal in January to drum up USD230 million to repay loans and bolster its finances, raised through the sale and leaseback of two B787-9s to Griffin Global Asset Management, a lessor owned by US private equity giant Bain Capital.
