Keeping Virgin Atlantic creditors back $1.6 bln rescue plan

LONDON, Aug 25 (Reuters) – Virgin Atlantic’s swap creditors voted on Tuesday in favour of a 1.2 billion pound ($1.6 billion) rescue plan, moving the air carrier a step closer to finishing a restructuring created to secure its succeeding beyond the coronavirus crisis.

Virgin Atlantic agreed the deal with shareholders & financial and other main creditors in July, in addition, on Tuesday reduced companies that the carrier owed money to in addition approved it.

“Today, Virgin Atlantic has gotten to a significant milestone in safeguarding the potential future of its, securing the overwhelming support of all the four creditor classes, this includes 99 % help from swap creditors which voted in favour of the plan,” a sp

“Achieving this milestone sets up Virgin Atlantic in a position to rebuild the balance sheet of its, reestablish consumer self-confidence and welcome passengers back to the atmosphere once they are ready to travel.”

The commercial airline, fifty one % run by Richard Branson’s Virgin Group and 49 % by U.S. airline Delta DAL.N, has had to close the base of its at London’s Gatwick Airport and cut over 3,500 projects to cope with fallout from COVID 19.

The pandemic has grounded planes & hammered need for air travel.

Virgin Atlantic had stated to a court filing in August it would run out of cash by the tail end of September unless the recapitalisation plan was authorized.

A hearing at London’s High Court is actually scheduled for Sept 2 to approve the weight loss plan.

“We stay confident that the weight loss program belongs to 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 slated for Sept three in the United States so that the deal can be recognised there.

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

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