Virgin Atlantic closer to $1.6B rescue plan

|
Virgin Atlantic needs U.S. bankruptcy court approval before it can implement a private recapitalization plan.
Virgin Atlantic needs U.S. bankruptcy court approval before it can implement a private recapitalization plan.

Virgin Atlantic is one step away from having approval to implement a $1.6 billion private recapitalization plan.

On Wednesday, the English High Court formally sanctioned the plan, the company announced. That ruling followed the formal approval by company creditors on Aug. 25.

Virgin Atlantic's final step toward approval could come Thursday, when a U.S. bankruptcy court will decide whether to recognize the restructuring plan. The carrier needs U.S. court approval in order to make the terms of the plan apply within the U.S.

Virgin Atlantic unveiled the restructuring plan in July. The airline will bolster liquidity with $267 million from Richard Branson's Virgin Group. Creditors, including 49% owner Delta, agreed to payment deferrals of a combined $600 million.  And hedge fund Davidson Kempner agreed to lend Virgin Atlantic $227 million. The carrier also delayed deliveries of Airbus jets.

Virgin Atlantic is primarily a long-haul operator, including flights between the U.K. and the U.S. It stopped flying in April due to the pandemic and resumed operations in July.

Comments

From Our Partners


From Our Partners

The Latest in Las Vegas
The Latest in Las Vegas
Watch Now
The Mexico Advisor
The Mexico Advisor
Read More
Historic Highlights of Germany Guide
Historic Highlights of Germany Guide
Read More

JDS Travel News JDS Viewpoints JDS Africa/MI