Staying Virgin Atlantic creditors returned $1.6 bln rescue plan

LONDON, Aug twenty five (Reuters) – Virgin Atlantic’s change creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue program, carrying the air carrier a step closer to completing a restructuring developed to secure its future beyond the coronavirus problems.

Virgin Atlantic agreed the offer with shareholders & economic along with other main creditors in July, additionally, on Tuesday smaller vendors that the carrier owed money to additionally endorsed it.

“Today, Virgin Atlantic has gotten to a significant milestone in preserving its future, securing the strong support of all the 4 creditor classes, which includes 99 % support from swap creditors that voted in favour of the plan,” a sp

“Achieving the milestone places Virgin Atlantic in a position to rebuild its balance sheet, recover consumer confidence and welcome passengers back to the atmosphere as soon as they’re ready to travel.”

The airline, fifty one % owned and operated by Richard Branson’s Virgin Group and forty nine % by U.S. airline Delta DAL.N, has had to close the base of its at London’s Gatwick Airport and cut over 3,500 projects to contend with fallout from COVID-19.

The pandemic has seated planes & hammered need for air travel.

Virgin Atlantic had reported in a court filing in August it will run out of cash by the end of September unless of course the recapitalisation approach was approved.

A hearing at London’s High Court is actually scheduled for Sept 2 to approve the weight loss program.

“We remain confident that the program represents the best possible effect for Virgin Atlantic and all the creditors of its and think that the court will exercise its power to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is actually slated for Sept 3 in the United States so that the price could be recognised there.

(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)

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