LONDON, Aug 25 (Reuters) – Virgin Atlantic’s change creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, shifting the air carrier a step closer to doing a restructuring designed to secure its succeeding beyond the coronavirus problems.
Virgin Atlantic agreed the offer with shareholders and financial as well as other major creditors in July, in addition, on Tuesday smaller companies that the carrier owed money to in addition endorsed it.
“Today, Virgin Atlantic has reached a major milestone in preserving the long term of its, securing the heavy support of all four creditor classes, which includes ninety nine % support from trade creditors which voted in favour of the plan,” a sp
“Achieving this milestone sets up Virgin Atlantic in a spot to rebuild the balance sheet of its, recover customer confidence and welcome passengers back again to the atmosphere the moment they are ready to travel.”
The air carrier, fifty one % run by Richard Branson’s Virgin Group and forty nine % by U.S. air carrier Delta DAL.N, has had to close its base at London’s Gatwick Airport and cut more than 3,500 projects to cope with fallout from COVID-19.
The pandemic has seated planes & hammered demand for air travel.
Virgin Atlantic had stated in a court filing of August it would run out of profit by the end of September unless the recapitalisation strategy was authorized.
A hearing at London’s High Court is slated for Sept 2 to approve the plan.
“We remain positive that the weight loss program represents the best possible outcome for Virgin Atlantic and all its creditors 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 price can be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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