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, carrying the air carrier a step closer to doing a restructuring designed to secure its future beyond the coronavirus crisis.
Virgin Atlantic agreed the offer with shareholders and monetary as well as other significant creditors in July, additionally, on Tuesday reduced suppliers that the carrier owed money to in addition endorsed it.
“Today, Virgin Atlantic has arrived at a significant milestone in protecting its potential future, securing the strong support of all four creditor classes, including 99 % help from swap creditors which voted in favour of the plan,” a sp
“Achieving the milestone places Virgin Atlantic in a position to rebuild the balance sheet of its, restore customer confidence and welcome passengers back again to the skies the moment they’re prepared to travel.”
The airline, fifty one % run by Richard Branson’s Virgin Group and forty nine % by U.S. airline Delta DAL.N, has had to close the platform of its at London’s Gatwick Airport and cut more than 3,500 tasks to contend with fallout from COVID 19.
The pandemic has seated planes and hammered demand for air travel.
Virgin Atlantic had said in a court filing in August it would run out of cash by the end of September unless of course the recapitalisation approach was sanctioned.
A hearing at London’s High Court is actually scheduled for Sept two to approve the plan.
“We stay positive that the program belongs to the absolute best effect for Virgin Atlantic and all its creditors 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 can be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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