LONDON, Aug twenty five (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, carrying the commercial airline a step closer to completing a restructuring designed to secure its succeeding outside of the coronavirus issues.
Virgin Atlantic agreed the deal with shareholders and economic and other main creditors in July, and on Tuesday smaller vendors that the carrier owed money to additionally authorized it.
“Today, Virgin Atlantic has arrived at a big milestone in protecting its future, securing the strong support of all the four creditor classes, including ninety nine % assistance from trade creditors that voted in favour of the plan,” a sp
“Achieving this milestone places Virgin Atlantic in a place to rebuild its balance sheet, reestablish customer self-confidence and welcome passengers again to the atmosphere as soon as they are ready to travel.”
The commercial airline, 51 % owned and operated by Richard Branson’s Virgin Group and 49 % by U.S. commercial airline Delta DAL.N, has had to close the base of its at London’s Gatwick Airport and cut more than 3,500 jobs to contend with fallout from COVID 19.
The pandemic has seated planes & hammered need for air travel.
Virgin Atlantic had said in a court filing in August it will run out of money by the tail end of September unless the recapitalisation strategy was authorized.
A hearing at London’s High Court is scheduled for Sept 2 to approve the weight loss program.
“We stay confident that the weight loss program represents the very best outcome for Virgin Atlantic and all the creditors of its and believe that the court will exercise the energy of its to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is due for Sept three 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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