[imagesource: Jekalo]

Back in February, if you Googled ‘cruise ship’, two results were likely to pop up.

The first was the Diamond Princess, a cruise ship that had been quarantined after an onboard outbreak of COVID-19. The second was Richard Branson’s newly-launched Scarlet Lady, the adults-only cruise ship that invited guests to “party like rockstars”.

Fast forward to April and Branson was requesting a government loan to keep Virgin Atlantic afloat and offering up Necker Island, his famous island hideaway in the British Virgin Islands, as collateral.

Forbes reports that, as the pandemic took hold, Branson’s Virgin business empire took a beating, bringing it to its knees, but it looks like he might be turning things around.

Following reports this week that Virgin Group has raised $250 million to prop up Virgin Atlantic, a company insider told Forbes that the “three and a half month slog” is finally delivering results. A formal confirmation of the restructuring is pencilled in for mid July.

After his request for a bailout from the UK government, he was met with the suggestion that he should use his net worth to bail out his company.

He also faced questions over his tax status and residency in the British Virgin Islands.

However, the mood has changed within the Virgin Group. Branson is on the verge of raising the $1 billion plus figure to help secure his business empire after the arrival of the coronavirus pandemic—$500 million from Delta (through deferments and waivers alongside Virgin Group), $300 million debt funding from the Elliott Management group, and $500 million from selling shares of Virgin Galactic SPCE -2.4% from May through June.

Further concessions and reorganization of credit card hold backs could bring in another $310 million if needed.

The Virgin Atlantic airline will be bolstered with $250 million in cash immediately, along with immediate shareholder support of roughly $500 million.

So, things are starting to fall into place as the empire rebuilds.

Firstly, Virgin Galactic, Branson’s most liquid asset, saw a positive rise to its share price that had fallen to $9 in mid March from a high of $20 in February. In May the Galactic price had returned to over $17, making the $500 million share sale raise (slightly) less heartbreaking for the group.

Secondly, the private debt sale that has brought hedge funds like Elliott to the table is described as winning “extremely strong interest” over the last few months.

Finally, on the plight of Virgin Atlantic’s staff, representatives worked with the two main unions to reach an agreement quicker than expected. Although 3,000 staff will lose their jobs, the communication with staff has been “up front and consensual,” according to a source with knowledge of the negotiations.

You can read more about the Virgin revival, here.

For now, it looks like the billionaire is back in business.

[source:forbes]