Virgin Atlantic filed for Bankruptcy 15 chapter coverage in New York on Tuesday because the COVID-19 pandemic hammers the airline trade.
The airline, based via British businessman Richard Branson, made the submitting in U.S. federal chapter court docket after a continuing in the UK.
A spokesperson for Virgin Atlantic says the chapter is a part of a court docket procedure to hold out a restructuring plan that the airline introduced closing month.
A number of airways had been driven to equivalent results via the pandemic. Latin The united states’s two greatest airways, LATAM and Avianca, filed for chapter coverage, in addition to Mexico’s Aeromexico. Virgin’s sister airline, Virgin Australia, filed for defense from collectors in its house nation in April.
The World Air Delivery Affiliation, a business workforce for world airways, estimates the air shuttle trade will lose $84 billion US this 12 months, and that income will drop via part from 2019 ranges.
Branson had appealed to the British executive for monetary lend a hand. Virgin Atlantic stated closing month that it raised $1.eight billion Cdn from personal assets, together with Branson himself, to shore up its battered budget.
Atlanta-based Delta Air Traces, which owns 49 in keeping with cent of the airline, agreed to defer bills it was once owed, and hedge fund Davidson Kempner agreed to lend Virgin Atlantic $128 million Cdn.