Last checked at 
* Posts 5.4 bln stg HY loss
* CFO resigns
* To sell ITP Aero, other assets worth at least 2 bln stg
* Shares down 9%
(Recasts with CFO, CEO analyst comments)
By Sarah Young
LONDON, Aug 27 (Reuters) - British aero-engine maker
Rolls-Royce said it would sell assets to try to raise at
least 2 billion pounds ($2.6 billion) as it battles to shore
up a balance sheet ravaged by the COVID-19 pandemic and slump in
travel.
Rolls-Royce plunged to a record loss before tax of 5.4
billion pounds ($7.14 billion) in the first half of 2020 and,
compounding its woes, finance chief Stephen Daintith resigned,
although said he would stay for a transition period.
The company said it would continue to look at options to
bolster its finances even after asset sales. But asked about a
possible rights issue, Daintith said Rolls-Royce had a good
level of liquidity and a plan to cut costs.
"We're not going to be drawn on any particular option for
strengthening the balance sheet. We're taking our time,
considering carefully," he told reporters on Thursday.
JP Morgan analysts said a rights issue was needed: "In our
view only a very major capital raise would put Rolls-Royce on a
sound footing."
Rolls-Royce shares dropped 9% in early trading. The stock is
down 66% this year, giving it a market capitalisation of 4.54
billion pounds.
As the company is an important supplier to the UK government
on military programmes, there has been media speculation that
Britain could be forced to rescue it.
"Probably the most important thing that government can do is
help get people flying again," CEO Warren East said, when asked
about potential state help.
DISPOSALS
Planes stopped flying for months in coronavirus lockdowns
earlier this year and travel remains at a much lower level than
before the pandemic, hitting Rolls-Royce as airlines pay it
based on how many hours engines fly.
Flying hours were down 70-75% in May, June and July, and the
company warned of considerable uncertainty over the timing and
shape of a recovery.
To boost its coffers, Rolls-Royce said it planned to sell
ITP Aero, which is based in Spain and makes turbine blades for
jet engines, and other assets to raise at least 2 billion pounds
over the next 18 months.
The group will also consolidate its aerospace manufacturing
facilities into six locations from 11, and said 4,000 job cuts
had already been made at its civil aerospace unit of the 9,000
announced in May - part of this year's 1 billion pound cost
cutting plan.
Daintith is set to move to retail technology firm Ocado
and Rolls-Royce said the search for a successor was
underway.
($1 = 0.7573 pounds)
(Reporting by Sarah Young, Editing by Paul Sandle and Mark
Potter)
