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, shifting the commercial airline a step closer to finishing a restructuring designed to secure its future beyond the coronavirus issues.
Virgin Atlantic agreed the offer with shareholders & economic along with other main creditors in July, additionally, on Tuesday lesser suppliers that the carrier owed money to also approved it.
“Today, Virgin Atlantic has reached a major milestone in preserving its future, securing the overwhelming support of all the four creditor classes, including ninety nine % help from trade creditors that voted in favour of the plan,” a sp
“Achieving this milestone places Virgin Atlantic in a position to rebuild the balance sheet of its, recover customer self-confidence and welcome passengers again to the skies the moment they are prepared to travel.”
The commercial airline, fifty one % owned by Richard Branson’s Virgin Group and 49 % by U.S. air carrier Delta DAL.N, has had to shut its platform 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 need for air travel.
Virgin Atlantic had reported in a court filing in August it would run out of profit by the end of September unless the recapitalisation plan was approved.
A hearing at London’s High Court is scheduled for Sept 2 to approve the program.
“We remain certain that the plan represents the best possible outcome 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 due for Sept three 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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