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, shifting the airline a step closer to doing a restructuring created to secure its later outside of the coronavirus issues.
Virgin Atlantic agreed the offer with shareholders & economic and other major creditors in July, in addition, on Tuesday reduced companies that the carrier owed money to in addition approved it.
“Today, Virgin Atlantic has arrived at a big milestone in preserving its long term, securing the strong support of all the four creditor classes, including ninety nine % support from swap creditors who voted in favour of the plan,” a sp
“Achieving the milestone sets up Virgin Atlantic in a position to rebuild the balance sheet of its, restore consumer confidence and welcome passengers again to the skies as soon as they are ready to travel.”
The commercial airline, 51 % owned by Richard Branson’s Virgin Group and forty nine % by U.S. airline Delta DAL.N, has had to shut the base of its at London’s Gatwick Airport and cut over 3,500 jobs to contend with fallout from COVID-19.
The pandemic has based planes & hammered need for air travel.
Virgin Atlantic had reported to a court filing in August it will run out of profit by the end of September unless of course the recapitalisation approach was approved.
A hearing at London’s High Court is scheduled for Sept two to approve the plan.
“We stay positive that the program represents the best possible effect 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 scheduled 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)
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