Branson’s Virgin Airways Seeks For US Bankruptcy Protection

Branson’s Virgin Airways Seeks For US Bankruptcy Protection

UK’s Virgin Airways is on a lookout for protection from creditors of the company in the US under the United States bankruptcy code (chapter 15), which aids a foreign debtor to protect assets in the nation.

Virgin Atlantic group’s filing reported that it had cracked a deal with its stakeholders for an agreeing recapitalisation to reduce or get off the debt from its balance sheet, thus, position the company for long term growth. 

Earlier in July, the Branson led group reported to negotiate a deal with its stakeholders worth $1.57B (1.2 billion pounds) to secure its airline arm after corona crisis.

Meanwhile, according to Bloomberg, the Virgin Airways group has asked for a restructuring from the British government and the company might run out of money if the deal is not approved until September.

The budget airline group has also shut down its Gatwick base and reported to cut the jobs of more than 3,500 employees to reduce cost and survive the COVID pandemic, which has taken the airline businesses to an absolute halt.

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