Virgin Atlantic’s $1.6 Billion Rescue Approved by U.K. Court (1)

Virgin Atlantic Airways Ltd. secured backing from a U.K. court for a 1.2 billion-pound ($1.6 billion) rescue package Wednesday that will keep billionaire Richard Branson’s airline afloat amid the coronavirus pandemic’s ravaging of the travel industry.

The ruling by Judge Richard Snowden clears the path for a bailout that will see U.S. hedge fund Davidson Kempner Capital Management provide funds to the carrier alongside Branson, its founder.

Snowden said he was “satisfied” with the plan. None of the creditors opposed the approval at the hearing.

Virgin Atlantic saw demand cut to a quarter of 2019 levels in the first ...