Virgin Atlantic gets OK for $1.6 bln rescue plan
Creditors came to the rescue of Virgin Atlantic Tuesday (August 25),
Voting through a $1.6 billion deal to keep the airline alive.
The creditors were made up of almost 200 suppliers the carrier owes more than $65,000 to.
The airline, owned by Richard Branson's Virgin Group and U.S. company Delta, said it is confident in the restructuring plan.
It added it's on track to finalize its recapitalisation in the first week of September.
The plan still has another hoop to go through yet, though.
A court hearing will be held in the UK on September 2 to approve the plan.
And a procedural hearing is also scheduled for the day after that in the U.S.
As with most airlines, Virgin Atlantic has found 2020 a brutal year due to the pandemic.
It closed its base at London's Gatwick Airport and cut over 3,500 jobs.
Virgin Atlantic also did not get the state support some rivals have seen in Germany and the U.S..
The carrier agreed a private-only restructuring deal, after Britain said it would only consider state support when all other avenues had been exhausted.
