Sir Richard Branson’s Virgin Atlantic Airways is in talks with shareholders and creditors about a further £160m support package just six months after securing a £1.2bn rescue deal.
Sky News has learnt that the billionaire tycoon’s flagship company is this weekend close to finalising the new funding, which will include a £100m loan from his Virgin Group, the airline’s majority owner.
The deal, which is expected to be wrapped up in the coming days, will underline the parlous state of the British aviation sector after the government ruled out a return to international travel in time for the crucial Easter holiday period.
Sources close to the Virgin Atlantic talks said its creditors had been supportive of the proposal, which will provide additional headroom in the event of further delays to the resumption of flights.
Under the latest deal, roughly £60m of further deferrals will be granted to Virgin Atlantic to avoid further pressure on cashflows, according to one insider.
An announcement about the package could come as soon as next week.
In a statement on Saturday responding to an enquiry from Sky News, a Virgin Atlantic spokesperson said: “We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021.
“This latest £160m financing provides further resilience against a slower revenue recovery in 2021 and follows a $230m financing on two Boeing 787s 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, for their ongoing support and unwavering belief in our future.”
The pandemic has been brutal for Virgin Atlantic, along with the rest of Britain’s aviation industry.
Last month, Boris Johnson said the…