Virgin Atlantic files for bankruptcy-- Chapter 15
Aug 5, 2020, 3:01 am
#16
Join Date: Jan 2014
Posts: 133
You're an unsecured creditor now, and a low priority one at that. Expect unsecured creditors to get wiped out in a reorganization.
Aug 5, 2020, 7:09 am
#17
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Is that a joke? No business is prepared to handle a loss of 90+% of it's revenue for a sustained period (years). There will be many more airline bankruptcies before all is said and done.
Aug 5, 2020, 7:20 am
#19
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Credit card processing companies closely monitor merchant's financials and are notorious for "holding back" funds from struggling airlines to cover chargebacks in case of liquidation.
Aug 5, 2020, 8:02 am
#20
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I also have NH F flights for March 20201 -- I'm far more worried about not going due to ongoing COVID issue than I am about this filing having an impact.
Seth's explainer post is spot on:
https://blog.wandr.me/2020/08/virgin...doesnt-matter/
Aug 5, 2020, 8:49 am
#21
Join Date: Oct 2019
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Who wants and can buy lots of airline assets now, even really cheap? They' re not planning to dissolve the company, only reorganize (hopefully). My guess is that the main role of a Chapter 15 filing is to prevent anyone from seizing or impounding any assets that might be permanently or temporarily located in the USA while bankruptcy details are worked out elsewhere.
BTW, does anyone know whether VS owns or leases its aircraft? Do they have any Boeing or Airbus orders (production slots) that could be of any value to another carrier?
BTW, does anyone know whether VS owns or leases its aircraft? Do they have any Boeing or Airbus orders (production slots) that could be of any value to another carrier?
Quite the conundrum for a creditor: a reorg with little/no operational change as in previous airline bankruptcies isn't viable with reasonable amounts of DIP funding but neither is a liquidation. Optimal approach is probably to reorg into a skeleton for a few years and maybe defer liquidation.
Aug 5, 2020, 9:33 am
#22
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You're an unsecured creditor now, and a low priority one at that. Expect unsecured creditors to get wiped out in a reorganization.
Aug 5, 2020, 2:16 pm
#23
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Just received this email:
Hello TomMM,
You may have seen headlines today regarding Virgin Atlantic’s Chapter 15 filing. I wanted to contact you to provide some more context, make sure you have all the information, and to reassure you that if you hold a booking with us, it’s safe.
Firstly, all our scheduled flights continue as normal. All upcoming flight and holiday bookings remain valid; Flying Club members can continue to earn and redeem their miles as usual; customers with cancellations can continue to make changes or request refunds, which are being processed; and our amazing people are ready to ensure you Fly Safe and Fly Well.
As announced on 14 July, we have taken a big step forward in securing our future, by launching a court backed process as part of a solvent recapitalisation of the airline and holiday business. The Chapter 15 filing in the United States is a procedural application to allow the US courts to recognise the restructuring process we are undertaking – in this case, the solvent recapitalisation of the airline under English law. Once approved and implemented, our plan will keep Virgin Atlantic flying.
For some independent analysis of what it means in practice, you can read this God Save The Points article.
Thanks again for all your support. We look forward to welcoming you onboard soon.
Oli Byers
Senior Vice President Customer Loyalty | Virgin Atlantic
You may have seen headlines today regarding Virgin Atlantic’s Chapter 15 filing. I wanted to contact you to provide some more context, make sure you have all the information, and to reassure you that if you hold a booking with us, it’s safe.
Firstly, all our scheduled flights continue as normal. All upcoming flight and holiday bookings remain valid; Flying Club members can continue to earn and redeem their miles as usual; customers with cancellations can continue to make changes or request refunds, which are being processed; and our amazing people are ready to ensure you Fly Safe and Fly Well.
As announced on 14 July, we have taken a big step forward in securing our future, by launching a court backed process as part of a solvent recapitalisation of the airline and holiday business. The Chapter 15 filing in the United States is a procedural application to allow the US courts to recognise the restructuring process we are undertaking – in this case, the solvent recapitalisation of the airline under English law. Once approved and implemented, our plan will keep Virgin Atlantic flying.
For some independent analysis of what it means in practice, you can read this God Save The Points article.
Thanks again for all your support. We look forward to welcoming you onboard soon.
Oli Byers
Senior Vice President Customer Loyalty | Virgin Atlantic
Aug 7, 2020, 7:14 am
#24
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