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 program, shifting the airline a step closer to finishing a restructuring developed to secure its later beyond the coronavirus problems.
Virgin Atlantic agreed the package with shareholders and monetary and other significant creditors in July, additionally, on Tuesday smaller suppliers that the carrier owed money to in addition approved it.
“Today, Virgin Atlantic has arrived at a significant milestone in preserving the potential future of its, securing the strong support of all 4 creditor classes, including 99 % help from change creditors who voted in favour of the plan,” a sp
“Achieving the milestone puts Virgin Atlantic in a position to rebuild the balance sheet of its, restore customer confidence and welcome passengers back to the skies once they’re ready to travel.”
The airline, fifty one % owned by Richard Branson’s Virgin Group and forty nine % by U.S. airline Delta DAL.N, has had to shut its base at London’s Gatwick Airport and cut more than 3,500 jobs to cope with fallout from COVID-19.
The pandemic has based planes & hammered need for air travel.
Virgin Atlantic had reported in a court filing of August it would run out of money by the end of September unless the recapitalisation strategy was approved.
A hearing at London’s High Court is actually scheduled for Sept two to approve the program.
“We remain certain that the weight loss program represents the best possible effect for Virgin Atlantic and all the creditors of its and think that the court will exercise the energy of its to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is slated 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)
The perspectives and opinions expressed herein are the views and views of the creator and do not necessarily represent people of Nasdaq, Inc.