LONDON, Aug 25 (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, moving the air carrier a step closer to finishing a restructuring developed to secure its future beyond the coronavirus crisis.
Virgin Atlantic agreed the package with shareholders and monetary and other main creditors in July, in addition, on Tuesday lesser companies that the carrier owed money to additionally endorsed it.
“Today, Virgin Atlantic has arrived at a significant milestone in protecting its potential future, securing the strong support of all the 4 creditor classes, including 99 % support from swap creditors who voted in favour of the plan,” a sp
“Achieving this milestone places Virgin Atlantic in a position to rebuild its balance sheet, restore consumer confidence and welcome passengers back to the skies the moment they are ready to travel.”
The airline, fifty one % owned and operated by Richard Branson’s Virgin Group as well as forty nine % by U.S. commercial 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 need for air travel.
Virgin Atlantic had reported in a court filing of August it would run out of money by the end of September unless of course the recapitalisation strategy was authorized.
A hearing at London’s High Court is slated for Sept 2 to approve the weight loss plan.
“We continue to be certain that the program represents the absolute best outcome for Virgin Atlantic and all the creditors of its and think that the court will exercise the energy of its to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is slated for Sept 3 in the United States so that the deal could be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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