VS Files for Chapter 15 Bankruptcy Protection in the US
#1
Original Poster
Join Date: Nov 2000
Location: Boston, MA
Programs: UA 1K 3MM Lifetime, AA PlatPro,Marriott Titanium Elite Lifetime, Hyatt Globalist
Posts: 741
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.
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, 2020 at 6:00 pm
#2
Join Date: May 2013
Location: DTW
Programs: AMEX, Ritz LT-Plat Prem, Hyatt Plat, SPG Plat, Hilton Diamond, Delta Plat, United Gold, Sixt Plat
Posts: 866
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.
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.
#6
Suspended
Join Date: Feb 2007
Location: PVG, FRA, SEA, HEL
Programs: UA Premier Gold
Posts: 4,783
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.
Chapter 15 is mainly meant for non US entities, who trying to protect their assets in the US.
#7
Join Date: Dec 2010
Location: LHR
Programs: Accor PLT,Thai Silver, HH Dia, SPG Titanium (LT Gold), Aegean Gold, BA Silver
Posts: 5,114
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.
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.
#8
Join Date: May 2013
Location: SAN, LAX
Programs: JMB, Bonvoy, Hyatt
Posts: 237
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.
#9
Join Date: May 2016
Programs: Marriot, ANA, IHG, AA, JMB
Posts: 15
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.
Delta is not like "any" partner, they own 49% of Virgin Holidays, that's why the poster said "hopefully Delta will still pull through."
#10
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 5,834
If the reorganization plan is not approved and VS liquidates, DL's "ownership" will not mean much of anything.
#13
Join Date: Aug 2013
Posts: 1,691
Delta is also a shareholder in the separate Virgin loyalty program/company that actually holds our points.
#14
Moderator: American AAdvantage
Join Date: May 2000
Location: NorCal - SMF area
Programs: AA LT Plat; HH LT Diamond, Matre-plongeur des Muccis
Posts: 62,948
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“