LONDON, Aug 25 (Reuters) – Virgin Atlantic’s change creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, shifting the commercial airline a step closer to finishing a restructuring developed to secure its future beyond the coronavirus problems.
Virgin Atlantic agreed the package with shareholders & monetary and other main creditors in July, in addition, on Tuesday reduced suppliers that the carrier owed money to also endorsed it.
“Today, Virgin Atlantic has gotten to a significant milestone in protecting its future, securing the heavy support of all the 4 creditor classes, which includes ninety nine % support from trade creditors which voted in favour of the plan,” a sp
“Achieving the milestone puts Virgin Atlantic in a spot to rebuild its balance sheet, reestablish consumer self-confidence and welcome passengers back to the atmosphere as soon as they are prepared to travel.”
The airline, fifty one % owned by Richard Branson’s Virgin Group as well as 49 % by U.S. airline Delta DAL.N, has had to shut the platform of its 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 in a court filing of August it would run out of profit by the tail end of September unless the recapitalisation strategy was sanctioned.
A hearing at London’s High Court is slated for Sept two to approve the weight loss program.
“We stay confident that the weight loss program belongs to the very best impact for Virgin Atlantic and all the creditors of its and believe that the court will exercise its energy to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is scheduled 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)
The views and opinions expressed herein are the views and opinions of the author and do not always reflect those of Nasdaq, Inc.