Just filed for bankruptcy in NY
https://www.businessinsider.com/virgin- ... ssion=true
NYC123 wrote:Just filed for bankruptcy in NY
https://www.businessinsider.com/virgin- ... ssion=true
Should that not read bankruptcy protection. Quite a big difference possibly.
Yes: Chapter 15 Bankrupcy Protection
I've heard of Chapter 11 bankruptcy protection in the US but never Chapter 15 before.
Thinking optimistically (and reading beyond the headline), it seems to be linked to the deal that was unveiled last month. Or I hope so at least!
Thinking optimistically (and reading beyond the headline), it seems to be linked to the deal that was unveiled last month. Or I hope so at least!
My very rough understanding of Ch 15 is it's to do with protections and "rules" around international entities (such as VS).
From my very quick reading on it this morning, it does look like it's some legal step in the deal that was unveiled last month so I can't work out if I'm missing something or it's slightly poor/sensationalist journalism.
From my very quick reading on it this morning, it does look like it's some legal step in the deal that was unveiled last month so I can't work out if I'm missing something or it's slightly poor/sensationalist journalism.
There is a decent layman's summary here.... it all sounds part of the process of a complex refinancing transaction.
https://www.headforpoints.com/2020/08/0 ... scue-plan/
Fingers crossed they can get it all over the line in time - despite the scary headlines, after reading the detail I'm a bit more optimistic there is a path through for the airline staff and all us loyal VS / FC customers.
https://www.headforpoints.com/2020/08/0 ... scue-plan/
Fingers crossed they can get it all over the line in time - despite the scary headlines, after reading the detail I'm a bit more optimistic there is a path through for the airline staff and all us loyal VS / FC customers.
I'm far from an expert on such things, but it seems to me there is some borderline mis-reporting here. For example, the BBC website reads "Crisis-hit Virging Atlantic file for US bankruptcy". Now while this obviously points to serious problems (that we all already knew about), a quick read up on Chapter 15 suggests to me that the main aim is to recognise a "main" proceeding in another country and to provide protection against US creditors whilst that takes place. Virgin appears to be going through some sort of process in the UK court system, I'm not sure what it is but it's obviously related to the rescue deal and is not a bankruptcy/administration process as yet. I presume the Chapter 15 filing is to protect VS from creditors in the US should it become insolvent in the US before the UK process is complete.
From VS Trade;
Update on the Solvent Recapitalisation of Virgin Atlantic
Dear valued partner,
Following my note a few weeks ago regarding our plans for solvent recapitalization, you may have seen news yesterday that Virgin Atlantic took our next steps in the plan with a court hearing in the UK. As I shared previously, our Restructuring Plan will go through a court-sanctioned process under Part 26A of the UK Companies Act 2006.
After a hearing in the UK, ancillary proceedings in support of the solvent recapitalization were also filed in the US under the Chapter 15 process. This step in the process allows US courts to recognize foreign restructuring processes – in our case, the process we have asked to be recognized is a solvent restructuring of an English company under Part 26A of the UK Companies Act 2006. To be clear, the steps taken yesterday were not a Chapter 11 bankruptcy filing.
We will continue over the coming weeks with the process of securing court approval for our creditor backed plan which will deliver a refinancing package worth over £1.2bn over the next 18 months. As this plan continues to unfold, we also continue to move forward with our return to the skies with the recent relaunch of passenger flights between London Heathrow and New York, Los Angeles , Barbados and Hong Kong. We will continue to re-introduce routes as demand increases and travel restrictions are lifted. As always, we make these decisions with the health and safety of our customers and employees at the forefront.
I thank you for your continued support during these times and remind you that my team and I are here should you have any questions. On behalf of the entire Virgin Atlantic and Virgin Atlantic Holidays family, stay safe and stay well.
Fly safe, fly well.
Yours sincerely,
Lee Haslett
Vice President UK & European Sales
Virgin Atlantic Airways Ltd
Update on the Solvent Recapitalisation of Virgin Atlantic
Dear valued partner,
Following my note a few weeks ago regarding our plans for solvent recapitalization, you may have seen news yesterday that Virgin Atlantic took our next steps in the plan with a court hearing in the UK. As I shared previously, our Restructuring Plan will go through a court-sanctioned process under Part 26A of the UK Companies Act 2006.
After a hearing in the UK, ancillary proceedings in support of the solvent recapitalization were also filed in the US under the Chapter 15 process. This step in the process allows US courts to recognize foreign restructuring processes – in our case, the process we have asked to be recognized is a solvent restructuring of an English company under Part 26A of the UK Companies Act 2006. To be clear, the steps taken yesterday were not a Chapter 11 bankruptcy filing.
We will continue over the coming weeks with the process of securing court approval for our creditor backed plan which will deliver a refinancing package worth over £1.2bn over the next 18 months. As this plan continues to unfold, we also continue to move forward with our return to the skies with the recent relaunch of passenger flights between London Heathrow and New York, Los Angeles , Barbados and Hong Kong. We will continue to re-introduce routes as demand increases and travel restrictions are lifted. As always, we make these decisions with the health and safety of our customers and employees at the forefront.
I thank you for your continued support during these times and remind you that my team and I are here should you have any questions. On behalf of the entire Virgin Atlantic and Virgin Atlantic Holidays family, stay safe and stay well.
Fly safe, fly well.
Yours sincerely,
Lee Haslett
Vice President UK & European Sales
Virgin Atlantic Airways Ltd
Who is online
Users browsing this forum: No registered users and 173 guests