Virgin Atlantic has secured backing from its creditors for a £1.2bn rescue deal that will save 6,500 jobs.
In July, the airline announced a restructuring plan after Alvarez & Marsal had been put on standby to explore contingency options. The recapitalisation will deliver a refinancing package worth £1.2bn over the next 18 months.
Virgin Atlantic secured the support of all four credit classes, including 99% of support from the company’s trade creditors, who voted in favour of the plan.
The airline, who had previously warned it would run out of cash by September without a deal, will now need approval from the High Court in London.
A Virgin Atlantic spokesperson said: “We remain confident that the plan represents the best possible outcome for Virgin Atlantic and all its creditors and believe that the court will exercise its power to sanction the restructuring plan, at a hearing scheduled on September 2.
“Achieving this milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies as soon as they are ready to travel.”