Back in July Virgin Atlantic’s primary creditors agreed to refinance its debts and the credit card companies, which had been holding back some £400m in ticket sales from the airline in case it went bankrupt (and ironically in doing so making its situation worse), agreed that they would pay the airline what it was owed.
Yesterday at a key meeting of UK creditors who were owed less than £65,000, they too agreed to the restructuring of debt, clearing the way for a September 2nd hearing at the UK Court, which will approve the measure and allow it to become legal. 75% of creditors had to agree to force all to participate.
A separate procedural hearing will take place in the United States as part of the Chapter 15 process on September 3rd.
The airline has had a traumatic few months, closing its original Gatwick base, scrapping all 7 of its remaining 747-400’s overnight, ditching the 3 remaining A346’s, and looks set to not return the 4 A332’s to service either, never mind cutting 3,500 jobs.
It’s recently re-scheduled its remaining A350-1000 deliveries and put off its A330-900’s (which were to be directly replacing the A333’s as their leases ended).
This week the airline launched a revolutionary Covid Insurance Protection scheme free to all travellers who fly with the airline, to try and encourage people to fly again.
Delta Airlines, which owns 49% of the airline but has provided virtually zero support, has accepted the outcome.
No Government money has been involved.