LONDON, Aug 25 (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue program, carrying the air carrier a step closer to completing a restructuring designed to secure its succeeding beyond the coronavirus problems.
Virgin Atlantic agreed the deal with shareholders and monetary along with other main creditors in July, additionally, on Tuesday smaller companies that the carrier owed money to in addition approved it.
“Today, Virgin Atlantic has arrived at a significant milestone in preserving its long term, securing the heavy support of all the 4 creditor classes, which includes ninety nine % assistance from swap creditors who voted in favour of the plan,” a sp
“Achieving the milestone sets up Virgin Atlantic in a position to rebuild its balance sheet, recover customer confidence and welcome passengers back to the skies the moment they are ready to travel.”
The airline, fifty one % owned and operated by Richard Branson’s Virgin Group as well as forty nine % by U.S. airline Delta DAL.N, has had to close the base of its at London’s Gatwick Airport and cut more than 3,500 projects to cope with fallout from COVID-19.
The pandemic has grounded planes and hammered need for air travel.
Virgin Atlantic had said in a court filing in August it would run out of cash by the tail end of September unless the recapitalisation approach was sanctioned.
A hearing at London’s High Court is due for Sept two to approve the program.
“We remain confident that the plan belongs to the very best impact 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 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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