LONDON, Aug twenty five (Reuters) – Virgin Atlantic’s trade creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, moving the commercial airline a step closer to doing a restructuring developed to secure its succeeding outside of the coronavirus crisis.
Virgin Atlantic agreed the deal with shareholders & financial as well as other significant creditors in July, in addition, on Tuesday smaller suppliers that the carrier owed money to also endorsed it.
“Today, Virgin Atlantic has gotten to a major milestone in safeguarding its future, securing the heavy support of all the four creditor classes, including 99 % support from trade creditors which voted in favour of the plan,” a sp
“Achieving the milestone places Virgin Atlantic in a place to rebuild its balance sheet, reestablish customer confidence and welcome passengers back again to the skies once they’re ready to travel.”
The airline, 51 % owned by Richard Branson’s Virgin Group and 49 % by U.S. airline Delta DAL.N, has had to shut its base at London’s Gatwick Airport and cut over 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 to a court filing of August it will run out of money by the tail end of September unless of course the recapitalisation approach was authorized.
A hearing at London’s High Court is actually scheduled for Sept two to approve the weight loss plan.
“We stay certain that the program belongs to the absolute best impact for Virgin Atlantic and all its creditors 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 3 in the United States so that the offer could be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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