LONDON, Aug 25 (Reuters) – Virgin Atlantic’s trade creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue program, shifting the airline a step closer to doing a restructuring created to secure its succeeding outside of the coronavirus issues.
Virgin Atlantic agreed the package with shareholders and monetary as well as other main creditors in July, and on Tuesday smaller companies that the carrier owed money to additionally endorsed it.
“Today, Virgin Atlantic has reached a significant milestone in safeguarding the future of its, securing the heavy support of all four creditor classes, this includes ninety nine % assistance from change creditors that 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, restore customer self-confidence and welcome passengers back to the atmosphere once they’re ready to travel.”
The commercial airline, 51 % run by Richard Branson’s Virgin Group and 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 over 3,500 jobs to cope with fallout from COVID-19.
The pandemic has based planes and hammered need for air travel.
Virgin Atlantic had said in a court filing of August it would run out of profit by the tail end of September unless the recapitalisation strategy was authorized.
A hearing at London’s High Court is actually scheduled for Sept two to approve the weight loss plan.
“We remain confident that the weight loss program belongs to the absolute best impact for Virgin Atlantic and all its creditors and assume that the court will exercise its power to sanction the restructuring plan,” the spokeswoman said.
A procedural hearing is actually scheduled for Sept 3 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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