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 program, carrying the commercial airline a step closer to doing a restructuring developed to secure its later outside of the coronavirus crisis.
Virgin Atlantic agreed the offer with shareholders and economic as well as other major creditors in July, and on Tuesday smaller suppliers that the carrier owed money to in addition endorsed it.
“Today, Virgin Atlantic has arrived at a major milestone in safeguarding its long term, securing the overwhelming support of all the four creditor classes, which includes 99 % support from change creditors which voted in favour of the plan,” a sp
“Achieving the milestone places Virgin Atlantic in a position to rebuild the balance sheet of its, reestablish consumer confidence and welcome passengers back to the skies the moment they are prepared to travel.”
The commercial airline, fifty one % owned by Richard Branson’s Virgin Group as well as forty nine % by U.S. commercial airline Delta DAL.N, has had to close the platform 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 will run out of profit by the end of September unless of course the recapitalisation approach was sanctioned.
A hearing at London’s High Court is actually scheduled for Sept 2 to approve the plan.
“We continue to be confident that the plan represents the very best outcome for Virgin Atlantic and all the creditors of its and assume that the court will exercise its energy to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is slated for Sept three 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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