28 Jul 2009

Virgin Blue seeks to raise funds

7:24 am on 28 July 2009

Australian airline Virgin Blue is looking to raise over $A231 million from shareholders to strengthen its balance sheet.

Investors will be offered shares at 20 cents each, a discount of one third on the airline's closing price on Friday.

The company's largest shareholder, Richard Branson, has committed up to $A80 million in the issue, as well as underwriting part of it.

Virgin Blue expects a loss of up to $A165 million for the June year, and says it will break even in 2010.

The airline's chief executive, Brett Godfrey, will retire in the next year.