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, carrying the airline a step closer to completing a restructuring developed to secure its later beyond the coronavirus crisis.
Virgin Atlantic agreed the deal with shareholders & monetary as well as other significant creditors in July, in addition, on Tuesday smaller vendors that the carrier owed money to also authorized it.
“Today, Virgin Atlantic has arrived at a big milestone in preserving its potential future, securing the overwhelming support of all the four creditor classes, this includes ninety nine % help from swap creditors who voted in favour of the plan,” a sp
“Achieving this milestone sets up Virgin Atlantic in a place to rebuild its balance sheet, reestablish customer self-confidence and welcome passengers again to the atmosphere once they’re prepared to travel.”
The air carrier, 51 % owned and operated by Richard Branson’s Virgin Group as well as 49 % by U.S. air carrier 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 stated to a court filing in August it would run out of profit by the conclusion of September unless of course the recapitalisation plan was approved.
A hearing at London’s High Court is actually due for Sept two to approve the plan.
“We remain confident that the weight loss plan represents the absolute best impact for Virgin Atlantic and all its creditors and assume that the court will exercise its power to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is actually scheduled 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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