By Tony Winterburn • 14 July 2020 • 13:23
Richard Branson is said to be relieved and happy after securing a massive £1.2 billion (€1.34 billion) rescue package deal.
THE deal, which includes almost £200 million (€224 million) from Richard Branson’s Virgin Group and hedge fund Davidson Kempner, could save the airline from entering administration – a move Branson has previously warned he would never let happen. Branson can now unveil the mammoth deal has planned for pilots, cabin crew, and head office staff.
The government is not involved in the rescue package, though the airline will be using a new-court sanctioned process introduced by a government reform, that reform was introduced to enable smoother corporate restructurings amid the coronavirus crisis.
In total, the restructuring will be worth up to £1.2 billion over 18 months and it will also allow Branson to retain a controlling interest in the airline. Virgin Group and Delta Air Lines, Virgin Atlantic’s two shareholders, will collectively defer approximately £400 million of fees.
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