Virgin Atlantic has raised $525 million in cash via three new loans, and creditors have agreed to take a hair cut. 42.5% comes from a hedge fund, 50% of the loan comes from Virgin Group, and the remaining 7.5% from a new loan against an aircraft engine.

Delta and Virgin Group get preferred stock as a swap against payments they’re owed by the airline. And the airline is reducing its aircraft lease obligations.

All of this was agreed to prior to today – with the whole deal waiting on a $13 million haircut the airline wanted its suppliers to take, along with spreading out payments still due in quarterly installments for two years. That’s now been agreed to. >A court is expected to approve the deal September 2.

As a result, there’s no longer immediate risk of insolvency. The airline reduces its expenses and has some additional cash to work with, though with higher interest obligations going forward – and a need for travel to recover, because there may not be much additional wood to burn if they find they need additional funding.

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Virgin Atlantic’s restructuring no longer poses a threat to Virgin miles. The miles were always going to retain their value as long as the airline remained in operation and that’s happening – although the carrier remains vulnerable. It retains a privileged position at London’s Heathrow airport, but travel demand has to return for that position to be valuable again.