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, shifting the airline a step closer to finishing a restructuring developed to secure its later outside of the coronavirus issues.

Virgin Atlantic agreed the deal with shareholders & financial and other significant creditors in July, in addition, on Tuesday lesser suppliers that the carrier owed money to also endorsed it.

“Today, Virgin Atlantic has gotten to a big milestone in safeguarding the future of its, securing the heavy support of all 4 creditor classes, this includes ninety nine % assistance from change creditors that voted in favour of the plan,” a sp

“Achieving this milestone puts Virgin Atlantic in a place to rebuild its balance sheet, reestablish consumer self-confidence and welcome passengers back to the skies as soon as they’re prepared to travel.”

The commercial airline, 51 % run by Richard Branson’s Virgin Group and 49 % by U.S. airline Delta DAL.N, has had to shut the platform of its at London’s Gatwick Airport and cut more than 3,500 projects to cope with fallout from COVID-19.

The pandemic has based planes & hammered demand for air travel.

Virgin Atlantic had stated to a court filing of August it would run out of profit by the conclusion of September unless of course the recapitalisation strategy was approved.

A hearing at London’s High Court is actually slated for Sept 2 to approve the weight loss program.

“We stay certain that the plan represents the absolute best effect for Virgin Atlantic and all the creditors of its and believe that the court will exercise its power to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is actually 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 reflect people of Nasdaq, Inc.

Related Post