Virgin Atlantic's latest negotiations with creditors
Judgment on the rescue plan is awaited
Negotiations of the carrier Virgin Atlantic with its creditors are in advanced phase. As it turned out at the beginning of this August, British company could run out of liquidity by the end of September (read the article published by AVIONEWS). The talks are anticipating the decision that the High Court of London will have to take on the bailout, for which 1.2 billion pounds will be invested (the judgment is expected next week). The question is not at all simple. Virgin's suppliers will have to accept or decline reduced payments from the airline (-20% to be precise), not forgetting the rest of the payments which should be staggered.
The suppliers we are talking about are above all the companies that rent the aircraft and other entities that deal with the various air services. Chief Executive Shai Weiss has been optimistic so far, despite the possibility that the £ 1.2bn may not be enough for the actual bailout. The planned plan for Richard Branson's airline is an absolute novelty as far as Great Britain is concerned. Insolvency, in fact, could be avoided even in the case of a "no" by the judges, a plan that is defined as "forced" and which is motivated by the fact that it must meet the interests of the main creditors.
AVIONEWS - World Aeronautical Press Agency