Staying Virgin Atlantic creditors returned $1.6 bln rescue plan

LONDON, Aug 25 (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue program, moving the air carrier a step closer to completing a restructuring developed to secure its later outside of the coronavirus problems.

Virgin Atlantic agreed the deal with shareholders and economic along with other main creditors in July, in addition, on Tuesday smaller companies that the carrier owed money to additionally authorized it.

“Today, Virgin Atlantic has reached a big milestone in safeguarding the potential future of its, securing the overwhelming support of all 4 creditor classes, including 99 % assistance from change creditors that voted in favour of the plan,” a sp

“Achieving the milestone puts Virgin Atlantic in a place to rebuild its balance sheet, reestablish customer self-confidence and welcome passengers back again to the atmosphere as soon as they’re prepared to travel.”

The commercial airline, 51 % owned by Richard Branson’s Virgin Group and forty nine % by U.S. airline Delta DAL.N, has had to shut the base of its at London’s Gatwick Airport and cut more than 3,500 projects to contend with fallout from COVID-19.

The pandemic has based planes & hammered demand for air travel.

Virgin Atlantic had reported to a court filing in August it would run out of cash by the end of September unless of course the recapitalisation plan was sanctioned.

A hearing at London’s High Court is scheduled for Sept two to approve the weight loss program.

“We continue to be certain that the weight loss plan belongs to the absolute best impact for Virgin Atlantic and all its creditors and think that the court will exercise the power of its to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is scheduled 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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