Virgin Atlantic creditors approve its restructuring plan.

Virgin Atlantic restructuring plan has been approved by the creditors of the British airline, which has been hard hit by the air transport crisis due to the coronavirus pandemic, the company announced on Tuesday.

“Today Virgin Atlantic has taken an important step towards safeguarding its future by gaining the overwhelming support” of creditors who validated the plan almost 100%, the company announced in a statement.

The next step is a hearing in the High Court of London on September 2nd to approve the restructuring, the airline said.

A day later, a procedural hearing must take place in the United States to ensure recognition of the restructuring plan in that country.

The airline had reached an agreement in July to raise £1.2 billion ($1.575 billion, ‘1.335 billion) in private funds to avoid bankruptcy.

British billionaire Richard Branson, its founder and majority shareholder with 51% of the capital, will contribute 200 million pounds. The other shareholder, the US company Delta Air Lines, owner of 49%, must also participate in the rescue.

In a court hearing in August in London, Virgin Atlantic’s lawyer explained that the airline could run out of funds at the end of September if the recapitalization plan is not approved, given the collapse of air traffic.

Specializing in transatlantic flights, the company has gradually resumed flights to the United States and Asia since July 20. It has already announced the loss of 3,000 jobs and the closure of its activities at London’s Gatwick airport.

Virgin Atlantic decided to turn to private investors after failing to obtain a public bailout in the United Kingdom.

By InfoBae