LONDON, Aug 25 (Reuters) – Virgin Atlantic’s swap 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 doing a restructuring created to secure its future outside of the coronavirus crisis.
Virgin Atlantic agreed the offer with shareholders & economic along with other main creditors in July, and on Tuesday reduced companies that the carrier owed money to additionally authorized it.
“Today, Virgin Atlantic has gotten to a big milestone in protecting its potential future, securing the heavy support of all the 4 creditor classes, this includes ninety nine % support from change creditors that voted in favour of the plan,” a sp
“Achieving the milestone puts Virgin Atlantic in a position to rebuild the balance sheet of its, recover customer confidence and welcome passengers back to the atmosphere as soon as they’re ready to travel.”
The commercial airline, fifty one % owned and operated by Richard Branson’s Virgin Group as well as forty nine % by U.S. air carrier Delta DAL.N, has had to shut its base at London’s Gatwick Airport and cut more than 3,500 projects to cope with fallout from COVID-19.
The pandemic has seated planes & hammered demand for air travel.
Virgin Atlantic had stated in a court filing in August it would run out of profit by the end of September unless of course the recapitalisation strategy was authorized.
A hearing at London’s High Court is scheduled for Sept 2 to approve the weight loss program.
“We continue to be certain that the weight loss plan represents the absolute best outcome for Virgin Atlantic and all its creditors and assume that the court will exercise its power 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 could be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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