That leaves a fourth group to persuade, the airline’s trade suppliers. Virgin Atlantic
is one of the first companies
to use the new UK court process, which allows a judge to force holdouts to go along with a financial restructuring if enough creditors approve.
Virgin Atlantic told the London court that without the plan’s approval, available cash would fall below £75 million, allowing bondholders to enforce the sale of vital operating slots at London Heathrow airport.
The Crawley, England-based carrier has been hit particularly hard by the coronavirus crisis. The lucrative North Atlantic market on which it depends is still largely wiped out as the outbreak continues to rage in the US.
Since January 1, bookings are down 89 per cent year-over-year and second-half demand is at about 25 per cent of 2019 levels, according to court papers.