Virgin Atlantic wins backing for £1.2bn rescue deal
Virgin Atlantic has won backing from its creditors for a £1.2bn rescue plan that will secure its future for at least the next 18 months.
The airline said shareholders, banks, aircraft owners and suppliers owed money approved the plan.
Virgin Atlantic said “this milestone” puts it in a position to “rebuild its balance sheet” and “welcome passengers back”.
It had warned it would run out of cash by September without the deal.
The company will now need approval from the High Court in London, which it will seek on 2 September.
The £1.2bn rescue deal involves £400m in new cash, half of which will come from its main shareholder, Sir Richard Branson’s Virgin Group.
Like other airlines, Virgin Atlantic’s finances have been hit hard by the collapse in air travel due to the pandemic.
It is cutting 3,500 staff, but the airline has said the remaining 6,500 jobs should be secure.