Virgin Atlantic to pitch investors amid administration risks

Virgin Atlantic Airways will begin pitching to potential investors Monday as it seeks to avoid collapse with air travel effectively grounded and the U.K. government reluctant to provide emergency funding, a person with knowledge of the situation said. The talks follow the UK carrier’s appointment of restructuring specialist Alvarez & Marsal to develop contingency plans for a so-called pre-packaged administration should it fail to secure financial backing, according to the person. Virgin Atlantic CEO Shai Weiss will set out the company’s survival plans and strategy to 12 firms that have emerged as serious contenders for investment out of 100 originally sounded out by Houlihan Lokey, the person said. Greybull Capital, Apollo Global Management, Centerbridge Partners, and Cerberus Capital Management are among possible investors, the person said. Singapore state investment fund Temasek Holdings Pte is also reportedly on the shortlist. The carrier founded by billionaire Richard Branson has enough cash to survive through the summer but is likely to have a better idea about its viability in the next week or two, including a bid to secure about $620m in state support, according to the person. “We are exploring all available options to obtain additional external funding,” a Virgin Atlantic spokeswoman said. “Discussions with a number of stakeholders continue and are constructive, meanwhile the airline remains in a stable position.”<br/>