Aircraft engine-maker Rolls-Royce announced a £5bn shareholder cash-call, a bond issue and new loan agreements in an attempt to shore up its balance sheet.
The company said it expects to have burned through £4bn in cash by the end of 2020.
Rolls-Royce has been hit hard by the impact of Covid-19 on its civil aviation business, and in August it reported a record £5.4bn loss for the first half of the year.
Rolls-Royce’s chief executive, Warren East said, “We are undertaking decisive and transformative action to fundamentally restructure our operations, materially reduce our cost base and improve our financial position. The capital raise announced today improves our resilience to navigate the current uncertain operating environment.”