RE: QUARANTINE GOING AHEAD INCLUDING BRITS RETURNING17 May 2020 14:24
Jet2 problems
Friday, May 15, 2020
Major airline in refunding talks
In what could be another serious blow to tourism in Madeira, it has been announced today that Jet2 are have been seeking government financing in order to keep operating.
A £300m re-financing deal was agreed overnight but still needs some agreement. More details here as they emerge:
Dart Group – the listed company behind Jet2.com – has been confirmed as an eligible issuer for the Bank of England COVID Corporate Financing Facility.
In response, the organisation has put in place a £300 million commercial paper programme to facilitate issuance under the scheme.
The cash will be used to provide standby liquidity, should that be required, and is currently unutilised, Dart said.
The COVID financing agreement is designed to support liquidity among larger businesses who are capable of demonstrating that they make a material contribution to the UK economy and are able to display sound financial health, equivalent to an investment-grade rating, prior to the economic shock caused by the COVID-19 pandemic.
Philip Meeson, executive chairman, commented: “The group is grateful to both the Bank of England and HM Treasury for the provision of the CCFF.
Together with a fully drawn revolving credit facility of £100 million, these two sources of additional liquidity will provide the group with headroom to deal with the present disruption and associated working capital requirements, ensuring we can continue to support our great business through this challenging period