Aug 07, 2020, 15:00 EST
Bronx, United States, Aug 07, 2020, 15:00 /Comserve / -- After filing for bankruptcy in Australia in April 2020, Virgin Atlantic filed for bankruptcy protection in the US also. The Richard Branson led airlines have been facing hardships since the COVID pandemic began.
New York. 6, Aug 2020- After filing for bankruptcy in Australia in April 2020, Virgin Atlantic filed for bankruptcy protection in the US also. The Richard Branson led airlines have been facing hardships since the COVID pandemic began.
Earlier in July 2020, Virgin Atlantic announced a plan for a private only solvent recapitalization of the airline. It’s a court backed process which once approved will keep Virgin Atlantic in business. In the meanwhile, they filed for bankruptcy protection as it tries to nail down this USD 1.6 billion rescue plan. Virgin Atlantic was facing a debt crisis which got worsened by the ongoing pandemic. The company has an asset management firm which will influx USD 222 million as loan as soon as the plan gets okay from shareholders and creditors.
Earlier, the same thing happened in Australia when the Australian government rejected the USD 580 million loan request and were forced to file for bankruptcy or ‘administration’, as it is called in Australia and the UK. After this Virgin Group took control of the airlines and was thinking of a plan to rescue the airlines. Now, in the US, this UK based company filed for bankruptcy protection in New York under Chapter 15 of ‘The US Bankruptcy Code’. A spokesperson for the company commented,” The process we have asked to be recognized [in the US] is a solvent restructuring of an English company under the English Companies Act”.
It must be noted that in May 2020, Virgin Atlantic was looking to raise USD 900 million from the German Deutsche Bank AG(NYSE: DB) along with other private equity firms in order to keep the airlines flying. But as is the case now, the measures have failed to beat fruit.
Earlier also, the revenue of Virgin Atlantic Airways was on a downfall from 2013 to 2018. It remains to be seen how the company takes its decisions now as the demand for air travel continues to decline due to the current situations.
About Virgin Group-
Virgin Group Ltd. is a multinational British conglomerate. It was founded in 1970 by entrepreneurs Sir Richard Branson. Headquartered in Westminster, it is a family-owned growth capital investor. It is a globally recognized brand with a focus on core consumer sectors namely Travel & Leisure, Telecom & Media, Music & Entertainment, Health & Wellness and Financial Services.
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