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VS Files for Chapter 15 Bankruptcy Protection in the US

VS Files for Chapter 15 Bankruptcy Protection in the US

Old Aug 4, 20, 2:40 pm
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VS Files for Chapter 15 Bankruptcy Protection in the US

Virgin Atlantic filed for Chapter 15 bankruptcy in New York on Tuesday.

https://www.businessinsider.com/virg...andemic-2020-8

The airline said during a court hearing in London on Tuesday that it would effectively run out of cash in September.
Delta CEO Ed Bastian has said that Delta would not offer a cash injection to save Virgin from a bankruptcy restructuring.

Last edited by edsh; Aug 4, 20 at 7:00 pm
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Old Aug 4, 20, 4:48 pm
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Originally Posted by edsh View Post
Virgin Atlantic filed for Chapter 15 bankruptcy in New York on Tuesday.

https://www.businessinsider.com/virg...andemic-2020-8

The airline said during a court hearing in London on Tuesday that it would effectively run out of cash in September.
Delta CEO Ed Bastian has said that Delta would not offer a cash injection to save Virgin from a bankruptcy restructuring.
Yeah that is crazy... I'm not too worried thou.
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Old Aug 4, 20, 4:57 pm
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Old Aug 4, 20, 5:10 pm
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Went ahead and used the 120k miles I have stored for an ANA F and went ahead and reserved two ATL ICN in Delta Suites in June, if they go under hopefully Delta will still pull through.
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Old Aug 4, 20, 5:19 pm
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Strange, I hadn’t heard of Chapter 15 bankruptcy in the US before. Learn something new all the time.
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Old Aug 4, 20, 5:39 pm
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Could you please add to the title that we are talking here about an US bankcruptcy - not a bankcruptcy in the UK!

Chapter 15 is mainly meant for non US entities, who trying to protect their assets in the US.
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Old Aug 4, 20, 5:52 pm
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This is the reply which I just received from Virgin

Hi there, in support of the solvent recapitalisation of Virgin Atlantic, a filing in the US was made on 4 August under their Chapter 15 process. This is not a Chapter 11 bankruptcy filing. It is filing which supports the solvent recapitalisation of the airline.
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Old Aug 4, 20, 7:14 pm
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Originally Posted by Mauibaby2008 View Post
Went ahead and used the 120k miles I have stored for an ANA F and went ahead and reserved two ATL ICN in Delta Suites in June, if they go under hopefully Delta will still pull through.
Not that there's much you can do with the miles otherwise, but if VS goes under it's unlikely you'd be able to fly the award booking. Partners generally get paid for the award after the flight. If VS is no longer around -> they're not getting paid -> you're not flying.
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Old Aug 4, 20, 8:33 pm
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Originally Posted by SugoiHikouki View Post
Not that there's much you can do with the miles otherwise, but if VS goes under it's unlikely you'd be able to fly the award booking. Partners generally get paid for the award after the flight. If VS is no longer around -> they're not getting paid -> you're not flying.
Notice that the poster didn't pick other partner (ex. ANA)) but picked Delta.
Delta is not like "any" partner, they own 49% of Virgin Holidays, that's why the poster said "hopefully Delta will still pull through."
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Old Aug 4, 20, 10:56 pm
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Originally Posted by tling View Post
Notice that the poster didn't pick other partner (ex. ANA)) but picked Delta.
Delta is not like "any" partner, they own 49% of Virgin Holidays, that's why the poster said "hopefully Delta will still pull through."
If the reorganization plan is not approved and VS liquidates, DL's "ownership" will not mean much of anything.
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Old Aug 5, 20, 1:00 am
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Originally Posted by t1c View Post
Yeah that is crazy... I'm not too worried thou.
No need to be worried, this is more restructuring than liquidation. You only need to be worried when it's liquidation.
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Old Aug 5, 20, 1:28 am
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Thread title amended for clarity.

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Old Aug 6, 20, 6:50 pm
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Originally Posted by tling View Post
Notice that the poster didn't pick other partner (ex. ANA)) but picked Delta.
Delta is not like "any" partner, they own 49% of Virgin Holidays, that's why the poster said "hopefully Delta will still pull through."
Delta is also a shareholder in the separate Virgin loyalty program/company that actually holds our points.
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Old Aug 8, 20, 11:04 pm
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Originally Posted by dsftm View Post
No need to be worried, this is more restructuring than liquidation. You only need to be worried when it's liquidation.

An email update sent out today:

“Hello A....,

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“
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