High Court in London backs Virgin Atlantic's rescue plan
Civil Rights
Virgin Atlantic’s 1.2 billion-pound ($1.6 billion) restructuring plan was approved Wednesday by the High Court in London, allowing the international airline to continue rebuilding its operations after the devastation caused by the coronavirus pandemic.
The deal, which has already been approved by creditors, must now be confirmed in the U.S. courts.
The airline announced the refinancing package in July to ensure its survival after passenger numbers dropped 98% in the second quarter. It includes 600 million pounds of support from the airline’s owners, Virgin Group and Delta Airlines, 450 million pounds of deferred payments to creditors and 170 million pounds of financing from U.S.-based Davidson Kempner Capital Management 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 aircraft as it seeks to weather the slowdown in air travel. The airline says it doesn’t expect passenger volume to return to pre-pandemic levels until 2023.
"Achieving this significant milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies, safely, as soon as they are ready to travel,” the company said in a statement.
Delta invested $360 million in Virgin Atlantic in December 2012, acquiring a 49% stake in the airline. Virgin Group owns the remaining 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.
Related listings
-
Given a chance, Trump would push court pick before election
Civil Rights 07/19/2020President Donald Trump and Senate Majority Leader Mitch McConnell have tried to make it clear: Given the chance, they would push through a Supreme Court nominee should a vacancy occur before Election Day.The issue has taken on new immediacy with the ...
-
Supreme Court lifts ban on state aid to religious schooling
Civil Rights 07/07/2020States can’t cut religious schools out of programs that send public money to private education, a divided Supreme Court ruled Tuesday.By a 5-4 vote with the conservatives in the majority, the justices upheld a Montana scholarship program ...
-
USCIS Preparing to Resume Public Services on June 4
Civil Rights 05/27/2020U.S. Citizenship and Immigration Services is preparing some domestic offices to reopen and resume non-emergency public services on or after June 4. On March 18, USCIS temporarily suspended routine in-person services at its field offices, asylum offic...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.