Virgin Atlantic creditors back £1.2bn rescue deal
The future of Virgin Atlantic has been secured for the next 18 months after the carrier won the backing for a £1.2bn rescue plan.
An announcement by the airline said…
The future of Virgin Atlantic has been secured for the next 18 months after the carrier won the backing for a £1.2bn rescue plan.
An announcement by the airline said the deal had been approved for shareholders, banks, aircraft owners and suppliers who owed money had approved the plan. Virgin Atlantic will seek High Court approval of the deal on September 2.
According to the airline, the cash injection will enable it to “rebuild its balance sheet” and “welcome passengers back.” Virgin Atlantic has already cut 3,500 jobs but has said the package should save 6,500 jobs.
Deal includes £400m
The £1.2bn deal includes £400m in new cash, of which half has been put up by Sir Richard Branson’s Virgin Group which is the main shareholder with a holding of 51 per cent.
US-based carrier Delta which owns 49 per cent of Virgin Atlantic, confirmed its support for the company and said it was “optimistic that this plan will allow Virgin Atlantic to secure its future”.
Virgin Atlantic was threatened with enforcement action over delays in processing refunds for cancelled flights with passengers waiting up to 120 days for their money back.
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