Virgin Atlantic Seeks Rescue Approval as Cash Running Out (1)

Richard Branson’s Virgin Atlantic Airways Ltd. told a London court that it will run out of cash next month unless it secures approval for a 1.2 billion-pound ($1.6 billion) rescue package announced in July.

Without the funds, available cash will drop to about 49 million pounds by late September, below the 75 million pounds specified in bondholder contracts, Virgin told a judge Tuesday. That would require the sale of Heathrow airport slots against which the bonds are secured, forcing the carrier to fold.

Virgin Atlantic said it obtained an order from the court to convene four creditor meetings on ...