Virgin Atlantic has moved a step closer to securing its future with a US court supporting its £1.2 billion restructuring and refinancing plan.
The carrier is currently undergoing a "solvent" refinancing in the UK courts but has also applied for Chapter 15 bankruptcy protection in New York to protect Virgin’s assets in the US.
This process moved a step forward on Friday (7 August) when the US court extended its initial ruling made on Tuesday (4 August) until a hearing on 3 September to tie in with court proceedings in the UK.
Virgin called the move by the US court “another important milestone” in the restructuring and refinancing process.
“The US proceeding is a standard procedural step to protect the airline’s assets while Virgin Atlantic’s recapitalisation is completed in the UK,” said a Virgin Atlantic spokesperson.
“The US court has scheduled a hearing for 3 September to immediately follow the final hearing before the English court.
“With support already secured from the majority of our creditors and stakeholders, it’s expected that the restructuring plan and solvent recapitalisation will come into effect in September. We remain confident in the plan.”
Virgin Atlantic’s creditors are due to vote on the restructuring plan on 25 August.