High Court in London backs Virgin Atlantic’s rescue view

LONDON (AP) — Virgin Atlantic’s 1.2 billion-pound ($1.6 billion) restructuring view became as soon as current Wednesday by the High Court in London, permitting the global airline to continue rebuilding its operations after the devastation precipitated by the coronavirus pandemic.

The deal, which has already been current by collectors, must now be confirmed in the U.S. courts.

The airline announced the refinancing equipment in July to provide definite its survival after passenger numbers dropped 98% in the 2nd quarter. It involves 600 million pounds of toughen from the airline’s house owners, Virgin Group and Delta Airways, 450 million pounds of deferred funds to collectors and 170 million pounds of financing from U.S.-essentially based entirely Davidson Kempner Capital Administration LP.

Virgin Atlantic, founded in 1984 by Richard Branson’s Virgin Group, has already cut 3,550 jobs, shuttered operations at London’s Gatwick Airport and announced plans to retire 11 airplane as it seeks to weather the slowdown in air commute. The airline says it doesn’t request passenger quantity to reach abet to pre-pandemic ranges unless 2023.

“Reaching this crucial milestone locations Virgin Atlantic able to rebuild its steadiness sheet, restore buyer self belief and welcome passengers abet to the skies, safely, as soon as they are able to commute,” the company mentioned in an announcement.

Delta invested $360 million in Virgin Atlantic in December 2012, procuring a 49% stake in the airline. Virgin Group owns the last shares.

Virgin flies from London’s Heathrow Airport and Manchester to destinations in the U.S., China, India, Pakistan, South Africa, Nigeria, Israel and the Caribbean.

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