The airline will go to the High Court to hear if around 170 suppliers approve a package that will mean them receiving 80% of the amount the airline owes them, with repayments in instalments.

The Financial Times said the airline had warned the court earlier this month that funds would reach a critical point in September if the bailout money was not released.

Virgin’s rescue plan is based on a five-year restructuring that depends on support from private backers. Cost savings of around £280 million a year will be sought, with another £880 million saved by rephrasing aircraft deliveries over the next five years.

Investment firm Davidson Kempner Capital Management will provide £170 million if the plan is approved, but creditors must agree to more than £450 million in deferred payments.

Virgin is seeking the court’s approval having failed in its bid for a UK government-backed bailout. The carrier is 51% owned by Sir Richard Branson’s Virgin Group and 49% by Delta, although the US carrier is thought to have declined to finance a rescue package.

Virgin said: “With support already secured from the majority of stakeholders, it’s expected that the restructuring plan and recapitalisation will come into effect late summer 2020.”