LONDON (Reuters) – British airline Virgin Atlantic said on Tuesday it had agreed a private-only rescue deal with shareholders and creditors worth 1.2 billion pounds ($1.5 billion) to secure its future beyond the coronavirus crisis.
It said the restructuring plan was supported by a majority of shareholders, and is expected to come into effect in late summer 2020.
The airline has had to close its Gatwick base and cut over 3,500 jobs to reshape in light of the COVID-19 pandemic, which has grounded planes and slashed demand for air travel.
“The last six months have been the toughest we have faced in our 36-year history. We have taken painful measures, but we have accomplished what many thought impossible,” Chief Executive Shai Weiss said in a statement.
“We greatly appreciate the support of our shareholders, creditors and new private investors and, together, we will ensure that Virgin Atlantic can emerge a sustainably profitable airline, with a healthy balance sheet.”