Virgin Atlantic in last-ditch creditor talks ahead of crunch vote

Virgin Atlantic has entered final talks with its creditors ahead of a crunch High Court vote next week on the GBP1.2b rescue package it has secured to keep it flying. The airline has warned that it could run out of money and enter administration if the creditors do not sign off on the deal that was agreed with shareholders and private investors in July. Support at the vote, which is scheduled for Tuesday at the High Court, London, would be the final piece in the puzzle of the airline’s complex rescue package. About 170 of Virgin Atlantic’s top suppliers, ranging from aircraft lessors to media buying agencies, are being asked to accept a 20% reduction on the money the airline owes them, and to receive the rest in staggered payments. CE Shai Weiss said in July that he was confident the deal with creditors would go through as it was only launched after the negotiations had been finalised. The airline “remains confident” that it will be able to win support from the creditors, it said. Virgin Atlantic’s lawyers told the High Court earlier in August that it would face a critical cash flow situation in September if the bailout funds were not released, and that it would “run out of money altogether” by the final week of the month.<br/>