Staying Virgin Atlantic creditors back $1.6 bln rescue plan

LONDON, Aug twenty five (Reuters) – Virgin Atlantic’s trade creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, shifting the commercial airline a step closer to doing a restructuring developed to secure its later outside of the coronavirus issues.

Virgin Atlantic agreed the package with shareholders & financial and other significant creditors in July, additionally, on Tuesday lesser vendors that the carrier owed money to additionally approved it.

“Today, Virgin Atlantic has reached a major milestone in preserving the long term of its, securing the overwhelming support of all 4 creditor classes, this includes 99 % assistance from trade creditors which voted in favour of the plan,” a sp

“Achieving this milestone puts Virgin Atlantic in a place to rebuild its balance sheet, restore customer self-confidence and welcome passengers again to the atmosphere as soon as they’re ready to travel.”

The airline, fifty one % owned and operated by Richard Branson’s Virgin Group as well as 49 % 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 contend with fallout from COVID 19.

The pandemic has seated planes and hammered demand for air travel.

Virgin Atlantic had said to a court filing in August it will run out of profit by the end of September unless the recapitalisation strategy was sanctioned.

A hearing at London’s High Court is actually due for Sept two to approve the program.

“We stay positive that the program represents the best possible impact for Virgin Atlantic and all its creditors and think that the court will exercise the power of its to sanction the restructuring plan,” the spokeswoman said.

A procedural hearing is actually slated for Sept three in the United States so that the offer can be recognised there.

(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)

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