Virgin Australia to raise A$852m as it bolsters capital
Virgin Australia will raise A$852m and slash costs as part of a new plan to cut its debt load and improve earnings. The equity raising will be supported by shareholders SIA, Nanshan Group, HNA and Virgin Group, although shareholder Etihad Airways has yet to commit to taking up its rights under the offer, Virgin said Wednesday. CE John Borghetti said Etihad was "still going through their internal processes and we haven't received the outcome of their processes as yet.” "Obviously they need to talk to their board," he said. "I'm not concerned because the $852m is underwritten." About $425m of the capital raised will be used to repay funds loaned to Virgin in March by its shareholders, with the rest to be used to strengthen Virgin's balance sheet by cutting next debt which currently stands at around $2b. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-06-16/unaligned/virgin-australia-to-raise-a-852m-as-it-bolsters-capital
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Virgin Australia to raise A$852m as it bolsters capital
Virgin Australia will raise A$852m and slash costs as part of a new plan to cut its debt load and improve earnings. The equity raising will be supported by shareholders SIA, Nanshan Group, HNA and Virgin Group, although shareholder Etihad Airways has yet to commit to taking up its rights under the offer, Virgin said Wednesday. CE John Borghetti said Etihad was "still going through their internal processes and we haven't received the outcome of their processes as yet.” "Obviously they need to talk to their board," he said. "I'm not concerned because the $852m is underwritten." About $425m of the capital raised will be used to repay funds loaned to Virgin in March by its shareholders, with the rest to be used to strengthen Virgin's balance sheet by cutting next debt which currently stands at around $2b. <br/>
