Virgin Atlantic Files for Bankruptcy

By Kurt Stolz on 5 August 2020
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A Virgin Atlantic 787-9 Dreamliner

Virgin Atlantic Airways filed for bankruptcy as the toll on airline amidst the coronavirus pandemic continued to grow.

The company protection filed from creditors under Chapter 15 of the U.S. Bankruptcy Code, according to a court filing made in the Southern District of New York on Tuesday.

The company is 51% owned by Sir Richard Branson’s Virgin Group and 49% by Delta Air Lines.

Chapter 15 bankruptcyallows a foreign debtor to file for bankruptcyin the U.S. court system.

The airline denied that it had filed for bankruptcy in the United Kingdom, its home market, and said that the purpose of the Chapter 15 filing was “solvent recapitalization.”

“In the case of Virgin Atlantic, the process we have asked to be recognized is a solvent restructuring of an English company under Part 26A of the English Companies Act 2006,” the company said in a statement.

(Photo: Accura Media Group)

Accura News

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