LONDON, Aug twenty five (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 completing a restructuring designed to secure its later outside of the coronavirus crisis.
Virgin Atlantic agreed the offer with shareholders and monetary as well as other major creditors in July, in addition, on Tuesday lesser companies that the carrier owed money to also authorized it.
“Today, Virgin Atlantic has arrived at a significant milestone in safeguarding the potential future of its, securing the overwhelming support of all four creditor classes, which includes 99 % support from change creditors who voted in favour of the plan,” a sp
“Achieving this milestone puts Virgin Atlantic in a place to rebuild the balance sheet of its, reestablish customer self-confidence and welcome passengers again to the skies once they are ready to travel.”
The commercial airline, fifty one % owned by Richard Branson’s Virgin Group and forty nine % by U.S. commercial 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 seated planes & hammered demand for air travel.
Virgin Atlantic had said in a court filing of August it will run out of cash by the tail end of September unless the recapitalisation approach was sanctioned.
A hearing at London’s High Court is slated for Sept two to approve the plan.
“We continue to be confident that the weight loss plan belongs to the best possible impact for Virgin Atlantic and all the creditors of its and think that the court will exercise its energy to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is due for Sept 3 in the United States so that the offer could be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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