Rolls-Royce asks its shareholders for a rescue deal worth $2.6 billion to survive the coronavirus outbreak
On Tuesday, Rolls-Royce Holdings (RR) stated that it would seek 2 billion Pounds ($2.6 billion) from its shareholders in a “make-or-break” attempt to survive the coronavirus pandemic.
The British multinational engineering company stated that the coronavirus outbreak severely affected its finances. The firm also added that its planes stopped flying due to the weak global travel demand.
“They’ve given themselves enough time and space to make sure that they get through to the other side,” Agency Partner’s Analyst Nick Cunningham stated.
Moreover, Rolls-Royce Holdings said that airlines forced the company to seek a 5 billion Pounds debt and equity package to survive many more months of expected turmoil.
Rolls Royce’s market value went down from over 20 billion Pounds in 2018 to 4.7 billion Pounds this year.