High Court in London backs Virgin Atlantic's rescue plan
Legal Events
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
-
German court convicts former concentration camp guard, 93
Legal Events 07/24/2020A German court on Thursday convicted a 93-year-old former SS private of being an accessory to murder at the Stutthof concentration camp, where he served as a guard in the final months of World War II. He was given a two-year suspended sentence.Bruno ...
-
No peeking, voters: Court keeps Trump taxes private for now
Legal Events 07/12/2020Rejecting President Donald Trump’s complaints that he’s being harassed, the Supreme Court ruled Thursday in favor of a New York prosecutor’s demands for the billionaire president’s tax records. But in good political news for T...
-
Simple math suggests complex back story at Supreme Court
Legal Events 06/17/2020Organizers of a Michigan ballot drive to prohibit discrimination against gay, lesbian and transgender people said Monday they were evaluating whether to continue following a major victory in the U.S. Supreme Court.Fair and Equal Michigan launched the...

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.