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| BA announces plan to raise £600m | BA announces plan to raise £600m |
| (10 minutes later) | |
| British Airways plans to raise £600m to help it get through difficult trading conditions, the airline has said. | British Airways plans to raise £600m to help it get through difficult trading conditions, the airline has said. |
| BA will issue £300m in convertible bonds to existing shareholders and release bank guarantees from its UK defined benefit pension schemes. | BA will issue £300m in convertible bonds to existing shareholders and release bank guarantees from its UK defined benefit pension schemes. |
| Observers say the carrier wants a safety net in case it faced industrial action from cabin crew over pay, as well as tough summer trading. | Observers say the carrier wants a safety net in case it faced industrial action from cabin crew over pay, as well as tough summer trading. |
| BA predicts lost about £100m in the three months to the end of June. | BA predicts lost about £100m in the three months to the end of June. |
| "Following discussions with institutional investors, we're taking action to improve our liquidity and strengthen our position within the industry," BA chief executive Willie Walsh said. | "Following discussions with institutional investors, we're taking action to improve our liquidity and strengthen our position within the industry," BA chief executive Willie Walsh said. |
| "This goes hand-in-hand with our cost reduction and efficiency initiatives which are designed to create the right conditions for our sustainable, long term profitability." | "This goes hand-in-hand with our cost reduction and efficiency initiatives which are designed to create the right conditions for our sustainable, long term profitability." |
| BA said the new funding would increase liquidity at the airline to about £2bn. | BA said the new funding would increase liquidity at the airline to about £2bn. |
| The airline had approximately £1.25bn of cash, it said. | |
| The convertible bonds would involve BA paying interest on them. Shareholders would then be able to convert the bond in 2014 into BA shares at an agreed price. | The convertible bonds would involve BA paying interest on them. Shareholders would then be able to convert the bond in 2014 into BA shares at an agreed price. |