Vertical Aerospace has been thrown a crucial lifeline, staving off potential bankruptcy at the cash-strapped air taxistartup.
The agreement, announced Monday, includes a $50mn cash injection and a substantial debt-to-equity swap.
This move reduces Verticals debt burden while extending the repayment date for the remaining $65mn to December 2028.
He will remain on the board as a non-executive director.
Despite the shift in control, Vertical will continue to operate from its headquarters in Bristol.
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In September, Bloombergreportedthatwithoutadditional funding, Vertical would risk running out of cash by March 2025.
As costs rose andtimelines slipped, investor confidence steadily waned, leaving many startups grounded.
While the bailout gives the company a lifeline for now, its future is far from certain.
Story bySion Geschwindt
Sion is a freelance science and technology reporter, specialising in climate and energy.
