LONDON, Aug 25 (Reuters) – Virgin Atlantic’s change creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, carrying the commercial airline a step closer to finishing a restructuring designed to secure its succeeding beyond the coronavirus issues.
Virgin Atlantic agreed the offer with shareholders and monetary along with other significant creditors in July, in addition, on Tuesday smaller companies that the carrier owed money to also authorized it.
“Today, Virgin Atlantic has gotten to a major milestone in protecting the future of its, securing the overwhelming support of all four creditor classes, which includes 99 % help from swap creditors that voted in favour of the plan,” a sp
“Achieving this milestone puts Virgin Atlantic in a position to rebuild the balance sheet of its, restore customer confidence and welcome passengers back again to the skies as soon as they’re ready to travel.”
The commercial airline, 51 % run by Richard Branson’s Virgin Group and 49 % by U.S. commercial airline Delta DAL.N, has had to close its platform at London’s Gatwick Airport and cut more than 3,500 jobs to cope with fallout from COVID-19.
The pandemic has grounded planes and hammered demand for air travel.
Virgin Atlantic had stated in a court filing of August it would run out of cash by the conclusion of September unless of course the recapitalisation plan was authorized.
A hearing at London’s High Court is actually scheduled for Sept two to approve the weight loss program.
“We stay confident that the weight loss program belongs to the very best impact for Virgin Atlantic and all the creditors of its and assume that the court will exercise the energy of its to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is actually due for Sept 3 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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