Virgin Atlantic Airways Ltd. is set to find out whether it has enough support from creditors for a 1.2 billion-pound ($1.6 billion) rescue or if it will need a judge to overrule them in order to stave off collapse, Bloomberg News reported. The U.K. carrier founded and controlled by billionaire Richard Branson has already secured the backing of three creditor classes and is now seeking approval from the fourth, comprising trade suppliers, in a vote yesterday. Support from the suppliers would eliminate the last potential obstacle to Virgin’s proposal ahead of a legal hearing next week. Should the creditors vote against the plan, the airline will have to persuade a judge, who under a new U.K. procedure can rule that a restructuring is preferable to insolvency even without the support of all relevant parties. The 36-year-old airline, which operates a fleet of 40 wide-body planes, reiterated that it remains “confident in the plan” and that it will be signed off. Virgin saw demand cut to a quarter of 2019 levels in the first half of the year as the coronavirus pandemic brought travel to a near standstill. It employs 6,500 people after slashing more than 30 percent of its staff, part of an airline worker toll of about 75,000 across Europe.
