Virgin Atlantic’s $1.6 Billion Rescue Approved by U.K. Court

  • U.K. judge signs off on bailout, U.S. court to rule Thursday
  • Branson’s airline warned it would run out of cash within weeks

     

Photographer: Anthony Devlin/Bloomberg
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Virgin Atlantic Airways Ltd. secured backing from a U.K. court for a 1.2 billion-pound ($1.6 billion) rescue package Wednesday that will keep billionaire Richard Branson’s airline afloat amid the coronavirus pandemic’s ravaging of the travel industry.

The ruling by Judge Richard Snowden clears the path for a bailout that will see U.S. hedge fund Davidson Kempner Capital Management provide funds to the carrier alongside Branson, its founder.