Virgin Atlantic to "run out of money" by end of September if bailout not approved

Virgin Atlantic has warned it will “run out of money altogether” by the final week of September if creditors do not agree to a GBP1.2b bailout package Tuesday. The rescue deal, which includes proposing creditors accept a 20% chop in the money the airline will pay them back, will be voted on at the High Court. Some 170 parties to whom the Sir Richard Branson-owned carrier owes payments must also agree to receive their cash back in staggered instalments. The airline “remains confident” that the complex refinancing package will be approved. The Independent has approached the airline for additional comment. As well as appealing to creditors to accept less money, Virgin Atlantic has also shut down its Gatwick base and announced it is canning 3,150 jobs – around a third of all employees – to cut costs. The brand’s owners are stumping up GBP600m to help keep the airline afloat, while GBP170m in financing is being fronted by US hedge fund Davidson Kempner Capital Management.<br/>