Virgin Atlantic saved by ‘milestone’ £1.2bn bailout package
Virgin Atlantic has been saved from bankruptcy after creditors voted in favour of a £1.2bn rescue deal.
The airline secured the “overwhelming support” of its 170 creditors in an important vote at the High Court today, during which the vast majority agreed to a complex restructuring plan.
A Virgin Atlantic spokesperson called the vote a “significant milestone” in safeguarding the beleaguered carrier’s future.
“Achieving this milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies as soon as they are ready to travel,” they said.
The Sir Richard Branson-owned airline had previously warned that it would run out of cash by the end of September if the businesses it owes money to did not support the proposed bailout package.
Measures include creditors agreeing to accept 80 per cent of what they’re owed, paid back in staggered instalments.
The company’s owners, the Virgin Group (which owns 51 per cent) and Delta Air Lines (49 per cent), have also agreed to stump up a £600m cash injection.
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