Virgin Blue to sell stock worth US$188m
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Virgin Blue Holdings Ltd., Australia’s second-largest airline, plans to sell AU$231 million (US$188 million) of stock after the carrier had its first annual loss, Bloomberg reported. The carrier will offer existing shareholders the right to buy new stock at 20 cents a share – a 31% discount on Friday’s price of 29 cents.
Additionally, the Virgin Blue announced that Chief Executive Officer, Brett Godfrey, will step down. According to a statement released yesterday, the airline may have incurred losses of up to AU$165 million in the year ending June 2009. However it added that it expects to break even in 2010.
“The operating environment over the last 12 months has been the most challenging in the airline’s history,” Virgin Blue said in the statement. “The strengthening of Virgin Blue’s capital position combined with the current strategic initiatives will position the business to weather the current market environment.”
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