Virgin Atlantic Files For Chapter 15 Bankruptcy

Virgin Atlantic has just filed for Chapter 15 Bankruptcy in New York



While other airlines such as LATAM, Avianca, and Aeromexico filed for Chapter 11 Bankruptcy, Virgin Atlantic has chosen a slightly different path with Chapter 15, which allows the U.S. and U.K. to cooperate and protects Virgin Atlantic’s assets.

Virgin Atlantic recently resumed flying on July 20 with flights to Hong Kong and Los Angeles/New York the day after.

Virgin Atlantic is in the process of approving a £1.2 billion rescue package. Meetings to discuss and hopefully approve this plan will take place on August 25.

Sources/Image

Image: https://www.airplane-pictures.net/photo/1185415/g-vfan-virgin-atlantic-boeing-787-9-dreamliner/
Sources: https://www.businessinsider.com/virgin-atlantic-bankruptcy-coronavirus-pandemic-2020-8
https://www.reuters.com/article/virgin-atlantic-bankruptcy/virgin-atlantic-airways-seeks-bankruptcy-protection-under-chapter-15-idUSL4N2F64ER

Also just pointing this out:

Delta Air Lines:

  • Joint Venture partner Virgin Australia - Entered Administration
  • 20% stake in LATAM - Chapter 11 Bankruptcy
  • 49% stake in Aeromexico - Chapter 11 Bankruptcy
  • 49% stake in Virgin Atlantic - Chapter 15 Bankruptcy.

Ouch.

For now, the airline will likely continue normal operations, similar to other airlines that have recently filed for bankruptcy reorganization.

Hopefully this will allow Virgin Atlantic to restructure and emerge stronger.

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NOOOOOOO

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Don’t know what Chapter 15 is but it doesn’t sound good! Hope Virgin Atlantic recovers soon, I’m hoping on getting a route from Orlando to Manchester…

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Not Virgin Atlantic, come on… such a wonderful airline. Especially since they placed #10 on the Travel+Leisure Airline Rating List just a few days back. Hopefully it does remain, I’d be super sad for them to go. I really want to fly Virgin Atlantic someday.

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Well I guess I’m not impressed. I mean, they were already losing tens of millions even before COVID, and this was just the final blow. I’m definitely not against getting a better service which would be paid by their shareholders, but it looks like they might finally turn towards making money first.

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This
Can’t
Be
Happening
Right
Now
image

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Virgin Atlantic was a great airline and to see one of its most popular routes die, its very sad. I remember countless times flying on their planes and the cabin crew being so friendly and providing a top notch service. If I ever went long haul in the future that was the airline I wanted to fly for. I hope it stays because the Virgin name is so precious and so important.

They need to keep flying, we can’t loose another great airline.
Cign :)

Nooooo! I love Virgin Atlantic and I dont want to see them leave like this 😢

@KaiM is not going to like this one ^

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eeek just wait until he gets up, its only 5am there :O

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This genuinely doesn’t mean anything. VS is restructuring and this is a process to protect it from US creditors.

It is still a trading business and restructure due to be finalised on 25th of this month and in to next month.

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So many British airlines…

I think people need to do some research on what Chapter 11 and Chapter 15 (and other forms while they are at it) are. This doesn’t mean Virgin Atlantic, or its partnerships, are going away necessarily (and not likely). It just means they are now protected from debt collectors and will have to restructure, like many airlines are going to have to do.

edit: typos

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Ouch.

@Ishrion im scared how quick you get these notifications and push out threads and im now convinced to believe you have bots refreshing pages every 2 seconds

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Ouch. Delta is probably gonna lose a ton of money

Isn’t it protecting their U.S. assets from local U.K. creditors? Or am I mixing it up?

While the Delta partnership and joint venture should stay, does Chapter 15 affect shareholders’ stakes in a company? Or are the equity investors protected during the proceedings?

Hope Virgin Atlantic can recover, had some unforgettable flights with them including my first ever 747 flight, hope they come out the other end stronger!

Chapter 15 is a little bit more open to international protection, i think ultimately shareholder stakes are the same as what is applied to chapter 11, but protects Virgin against british shareholders during the process since the airline has ownership officially in both countries.

Indeed he is not

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