Virgin Atlantic sells jets to pay off rescuer Davidson Kempner

Virgin Atlantic Airways sold two Boeing 787 jetliners to fund the repayment of a loan from hedge fund Davidson Kempner Capital Management that formed the basis of a hard-won rescue last year. The planes were bought by Griffin Global Asset Management and Bain Capital Credit, Virgin Atlantic said Friday. The sale and leaseback deal, which allows the airline to go on operating the aircraft, raised $230m. After paying off the balance of the $170m borrowed from New York-based Davidson Kempner at the height of the coronavirus crisis, Virgin Atlantic will have GBP70m left for its own funds. The loan from Davidson helped save Virgin after Britain refused it access to state funding tapped by half a dozen other airlines, setting management off on a six-month search for backers. <br/>