Remaining Virgin Atlantic creditors back $1.6 bln rescue plan

LONDON, Aug twenty five (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, moving the airline a step closer to finishing a restructuring developed to secure its succeeding beyond the coronavirus issues.

Virgin Atlantic agreed the deal with shareholders and economic and other major creditors in July, in addition, on Tuesday reduced vendors that the carrier owed money to in addition authorized it.

“Today, Virgin Atlantic has gotten to a significant milestone in preserving the future of its, securing the heavy support of all the 4 creditor classes, including 99 % support from trade creditors which voted in favour of the plan,” a sp

“Achieving this milestone sets up Virgin Atlantic in a spot to rebuild the balance sheet of its, recover customer self-confidence and welcome passengers back again to the atmosphere the moment they’re prepared to travel.”

The commercial airline, 51 % owned and operated by Richard Branson’s Virgin Group as well as 49 % by U.S. air carrier Delta DAL.N, has had to close the platform of its at London’s Gatwick Airport and cut over 3,500 projects 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 would run out of profit by the tail end of September unless the recapitalisation plan was authorized.

A hearing at London’s High Court is actually slated for Sept two to approve the plan.

“We stay confident that the weight loss program belongs to the very best outcome for Virgin Atlantic and all the creditors of its and think that the court will exercise its energy to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is actually scheduled 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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