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 completing a restructuring developed to secure its future outside of the coronavirus crisis.
Virgin Atlantic agreed the package with shareholders and financial and other main creditors in July, in addition, on Tuesday smaller suppliers that the carrier owed money to additionally authorized it.
“Today, Virgin Atlantic has reached a big milestone in protecting the potential future of its, securing the heavy support of all four creditor classes, which includes ninety nine % support from swap creditors that voted in favour of the plan,” a sp
“Achieving the milestone places Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies the moment they are ready to travel.”
The commercial airline, 51 % run by Richard Branson’s Virgin Group and 49 % by U.S. air carrier Delta DAL.N, has had to close the platform of its at London’s Gatwick Airport and cut over 3,500 tasks to contend with fallout from COVID-19.
The pandemic has based planes and hammered need for air travel.
Virgin Atlantic had reported in a court filing in August it will run out of money by the end of September unless of course the recapitalisation strategy was sanctioned.
A hearing at London’s High Court is actually scheduled for Sept 2 to approve the weight loss program.
“We stay certain that the weight loss program belongs to the very best outcome for Virgin Atlantic and all its creditors and think that the court will exercise the energy 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 price could be recognised there.
(Reporting by Alistair Smout; Editing by Kirsten Donovan and John Stonestreet)
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