Keeping Virgin Atlantic creditors back $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, shifting the airline a step closer to completing a restructuring created to secure its later outside of the coronavirus issues.

Virgin Atlantic agreed the deal with shareholders and financial along with other major creditors in July, in addition, on Tuesday reduced companies that the carrier owed money to additionally endorsed it.

“Today, Virgin Atlantic has gotten to a significant milestone in preserving its potential future, securing the strong support of all the four creditor classes, this includes 99 % support from change creditors who voted in favour of the plan,” a sp

“Achieving this milestone puts Virgin Atlantic in a spot to rebuild its balance sheet, recover customer self-confidence and welcome passengers again to the skies as soon as they are prepared 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 shut the platform of its at London’s Gatwick Airport and cut over 3,500 projects to cope with fallout from COVID-19.

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

Virgin Atlantic had stated in a court filing of August it will run out of cash by the conclusion of September unless the recapitalisation strategy was sanctioned.

A hearing at London’s High Court is due for Sept 2 to approve the program.

“We stay confident that the weight loss plan 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 due for Sept 3 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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