Keeping 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 plan, moving the airline a step closer to finishing a restructuring designed to secure its future outside of the coronavirus problems.

Virgin Atlantic agreed the deal with shareholders & monetary along with other main creditors in July, additionally, on Tuesday lesser companies that the carrier owed money to also approved it.

“Today, Virgin Atlantic has arrived at a major milestone in protecting its future, securing the overwhelming support of all four creditor classes, this includes 99 % support from trade creditors which voted in favour of the plan,” a sp

“Achieving this milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer self-confidence and welcome passengers back again to the atmosphere once they’re ready to travel.”

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

The pandemic has seated planes and hammered need for air travel.

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

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

“We stay positive that the program represents the best possible impact 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 due for Sept three in the United States so that the price could be recognised there.

(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)

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