A&O's Ballheimer Leading £1.2B Virgin Atlantic Rescue Deal
The airline has agreed a recapitalisation plan which will deliver it a financing package worth £1.2 billion.
July 14, 2020 at 09:33 AM
2 minute read
Virgin Atlantic has announced a £1.2 billion recapitalisation plan. Credit: Shutterstock.com
Allen & Overy is advising Virgin Atlantic on its £1.2 billion rescue deal, according to several people with knowledge of the mandate.
A&O former managing partner and corporate heavyweight Andrew Ballheimer is co-leading the firm's team advising on the matter.
Airline and holiday business Virgin Atlantic announced in a statement on Tuesday that it is launching a recapitalisation as part of a restructuring plan based on a five-year business approach to help rebuild its balance sheet.
The recapitalisation will deliver a refinancing package worth £1.2bn over the next 18 months, the group said in its statement.
The statement read: "Shareholders are providing £600m in support over the life of the plan including a £200m investment from Virgin Group, and the deferral of £400m of shareholder deferrals and waivers.
A&O's team consists of Ballheimer and other London based heavyweight partners, including restructuring head Earl Griffith and global co-head of corporate David Broadley. The team also includes corporate finance partner Claire Coppel, global head of structured and asset finance Mario Jacovides, and banking and finance partners Nicholas Clark and Jennifer Marshall.
According to one person with knowledge of the matter, Freshfields Bruckhaus Deringer is advising the banks on the recapitalisation. The partners leading the team are restructuring partner Adam Gallagher and banking partner David Trott.
The recapitalisation comes after the company has encountered sustained financial difficulties caused by the coronavirus pandemic, which has severely impacted the travel and aviation industry.
Last month, private equity giant Bain Capital agreed to buy the Virgin's Australian arm, Virgin Australia. Bain Capital was advised by Herbert Smith Freehills on the deal.
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