Remaining Virgin Atlantic creditors back $1.6 bln rescue plan

LONDON, Aug 25 (Reuters) – Virgin Atlantic’s trade creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue program, moving the airline a step closer to doing a restructuring designed to secure its future beyond the coronavirus issues.

Virgin Atlantic agreed the deal with shareholders and financial as well as other significant creditors in July, additionally, on Tuesday smaller companies that the carrier owed money to in addition approved it.

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

“Achieving the milestone puts Virgin Atlantic in a position to rebuild the balance sheet of its, recover consumer confidence and welcome passengers back again to the atmosphere the moment they are prepared to travel.”

The commercial airline, fifty one % owned and operated 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 over 3,500 jobs to cope with fallout from COVID 19.

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

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

A hearing at London’s High Court is slated for Sept two to approve the weight loss program.

“We remain positive that the weight loss program belongs to the absolute best effect for Virgin Atlantic and all its creditors and think that the court will exercise its power to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is scheduled 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)

The perspectives as well as opinions expressed herein are the views and notions of the writer and do not always mirror those of Nasdaq, Inc.