Keeping 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 plan, moving the commercial airline a step closer to finishing a restructuring designed to secure its future beyond the coronavirus crisis.
Virgin Atlantic agreed the deal with shareholders & economic as well as other main creditors in July, in addition, on Tuesday smaller suppliers that the carrier owed money to additionally approved it.
“Today, Virgin Atlantic has gotten to a major milestone in preserving the future of its, securing the strong support of all 4 creditor classes, which includes 99 % help from trade creditors that voted in favour of the plan,” a sp
“Achieving this milestone sets up Virgin Atlantic in a spot to rebuild the balance sheet of its, restore customer self-confidence and welcome passengers again to the atmosphere once they are ready to travel.”
The commercial airline, fifty one % owned by Richard Branson’s Virgin Group as well as 49 % by U.S. airline Delta DAL.N, has had to close the platform of its at London’s Gatwick Airport and cut more than 3,500 jobs to contend with fallout from COVID-19.
The pandemic has grounded planes and hammered demand for air travel.
Virgin Atlantic had reported to a court filing in August it would run out of money by the end of September unless the recapitalisation approach was authorized.
A hearing at London’s High Court is scheduled for Sept 2 to approve the plan.
“We stay positive that the weight loss program belongs to the best possible effect for Virgin Atlantic and all its creditors and believe that the court will exercise the power of its to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is actually slated for Sept three in the United States so that the price can be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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