Virgin in £1bn finance rescue talks

VIRGIN Atlantic is in crunch talks to seal a £1billion rescue package this weekend that will save around 7,000 jobs.

The airline is trying to convince card payment processing groups Cardnet and First Data to release £200million to boost its capital.that would enable it to secure a refinancing package from new investors, founder Sir Richard Branson and other existing shareholders, and creditors.the deal, if talks are successful, could be announced ontuesday.

Aside from the refinancing,virginatlantic plans to cut its headcount by 3,000 to 7,000 and end its operations at Gatwick.

A spokeswoman said: “Since the very beginning of the Covid-19 crisis, we have made difficult decisions and taken decisive action to reduce our costs, preserve cash and protect as many jobs as possible.”