Skip to content
Subscriber Only
Markets
Deals

Virgin Atlantic Favors U.S. Hedge Fund for Rescue Cash

  • Would lead up to $620 million in funding for Branson’s carrier
  • Elliott-Greybull alliance still in race; Centerbridge in touch
Grounded Airlines At Manchester Airport
Photographer: Anthony Devlin/Bloomberg
Updated on

Virgin Atlantic Airways Ltd. is edging toward an up to 500 million-pound ($620 million) emergency financing package led by Davidson Kempner Capital Management as the U.K. airline firms up survival plans, people familiar with the matter said.

The U.S. hedge fund has emerged as the favored funding provider, ahead of an alliance of Elliott Management and U.K. investment firm Greybull Capital, according to the people, who asked not to be named as talks are private.