[UK] Virgin has secured a £1.2billion rescue deal from its creditors which spans over the next 18 months, saving the airline for now.
The BBC has reported Virgin Atlantic has won backing from its creditors for a £1.2billion rescue plan that will secure its future for at least the next 18 months.
Virgin is using this rescue plan to rebuild its balance sheet so it can welcome passengers back, and give confidence to future bookings. Virgin was on the brink of bankruptcy as they were due to run out of cash by September 2020.
This deal includes £400 million in cash (half of which will come from its main shareholder, Sir Richard Branson's Virgin Group), as well as negotiations with banks, shareholders aircraft owners, and suppliers who they owe money. Virgin has previously announced 3,500 job cuts, but they have said the remaining 6,500 jobs should now be secure.