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Hit by Covid crisis, Virgin Atlantic set to raise 160 mn pounds in new financing

“We proceed to bolster our stability sheet in anticipation of the lifting of worldwide journey restrictions in the course of the second quarter of 2021”, a spokeswoman for Richard Branson’s airline mentioned.

Reuters

PUBLISHED ON MAR 14, 2021 03:56 PM IST

British airline Virgin Atlantic, which has been hammered by the Covid-19 pandemic like a lot of the sector, is about to lift 160 million kilos ($222.75 million) in new financing, a spokeswoman for Richard Branson’s airline mentioned in an emailed assertion.

“We proceed to bolster our stability sheet in anticipation of the lifting of worldwide journey restrictions in the course of the second quarter of 2021”, the spokeswoman mentioned.

“This newest £160 million financing offers additional resilience in opposition to a slower income restoration in 2021”, she mentioned.

The most recent financing follows the airline’s completion in January of the sale and leaseback of two Boeing 787s as a part of a plan to strengthen its stability sheet.

The take care of Griffin World Asset Administration to lift simply over $230 million from the 2 planes was meant to allow Virgin Atlantic to repay a mortgage taken on as a part of its rescue deal final 12 months.

Within the newest elevate, Branson’s Virgin Group is about to supply about 100 million kilos and the remaining 60 million kilos would come with deferrals, in response to Sky Information, which first reported the event.

In November, the corporate mentioned that its 1.2 billion pound rescue deal secured two months prior meant that the airline can survive even when the journey state of affairs have been to worsen.

Virgin lower prices by 335 million kilos final 12 months, CEO Shai Weiss instructed an airline business occasion in November. It had additionally introduced 4,650 job losses in the course of the pandemic, halving its workforce, and shrank its fleet.

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