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FIGHT OR FLIGHT! Virgin Atlantic close to going bust

VIRGIN Atlantic has put administration solicitors on stand by on the off chance that it runs out of money in the upcoming days or weeks.

Richard Branson’s carrier, which has experienced money related difficulties since the coronavirus epidemic has brought in restructuring expert Alvarez and Marsal (A&M) to assemble plans on the off chance that it becomes penniless, Sky News reports.

The firm would concentrate on making a pre-pack organisation – where an organisation orchestrates an arrangement to offer its assets to a purchaser before appointing administrators.

A pre-pack arrangement would mean its current investors, for example, US organisation Delta Air Lines, would no longer have its shares in the business.

A representative for Virgin Atlantic said it was investigating various alternatives to acquire extra outside investment to try and avoid going into administration.

“We continue to take decisive action to reduce our costs, preserve cash and protect as many jobs as possible.

“Discussions with a number of stakeholders continue and are constructive, meanwhile the airline remains in a stable position.

“Virgin Atlantic is committed to continuing to provide essential connectivity on competitive terms to consumers and businesses in Britain and beyond, once we emerge from this crisis.”

Sir Richard has named venture bank Houlihan Lokey to help discover investors after he was recently censured for looking for a £500m government bailout.

Ryanair supervisor Michael O’Leary said Branson – worth an expected £3.8 billion – should “rescue himself” while an appeal was set up calling for him to be deprived of his knighthood.

After the analysis, Branson shelved his legislature bailout offer.

He later posted on Twitter saying he would put his private Caribbean island, Necker, up for collateral to save Virgin Atlantic.

However, individuals rushed to bring up that 49 percent of Necker island – worth around £80million – is owned by US carrier Delta.

Not long ago, it was reported in excess of 3,000 jobs at the Virgin Atlantic and Virgin Holidays travel brands would be axed out to help save the business.

It follows similar moves from British Airways eliminating 12,000 positions.

Ryanair additionally said it was losing 3,000 jobs.

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