By Eric King-
Sir Richard Branson has presented his luxury island resort as collateral to bail him out of the economic damage his airline has bee subjected to by the coronavirus. Virgin Atlantic is in trouble, and stinking rich Branson wants help
The billionaire Virgin Group boss is asking for a commercial loan, believed around £500m as his Virgin Group’s airline in Australia faces administration. His airlines have been hit hard by the global coronavirus lockdown, and Sir Richard has appealed to governments in both countries for financial assistance. His known wealth and business clout is expected to be represent enough credibility for the loan he seeks, but it remains to be seen if he is granted the request.
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Sir Richard, who is known to be worth over £4bn is a celebrated entrepreneur. Most people expected he would be able to bail his company with his own cash, but the ultra rich man who owns 49% of Virgin Atlantic said matters are not that straightforward.Sir Richard said in his letter to staff: “Many airlines around the world need governmentsupport and many have already received it.” The crisis facing airlines, and the staff they employ, was “unprecedented,” he said.
The established billionaire said that his wealth did not mean he had “cash in a bank account ready to withdraw”. And he hit back at criticism that he was a tax exile who did not deserve help, saying he and his wife “did not leave Britain for tax reasons but for our love of the beautiful British Virgin Islands and in particular Necker Island”.
He said Necker would be offered as security for any loans. “As with other Virgin assets, our team will raise as much money against the island as possible to save as many jobs as possible around the group,” Sir Richard said.
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