Leading global airliner, Virgin Atlantic has issued a statement to clarify the Chapter 15 filing by the company, following misreporting overnight (by some foreign media).
According to the statement on the UK court hearing and subsequent Chapter 15 filing, the general public should “Please note this is not a Chapter 11 bankruptcy filing, but a filing which supports the solvent recapitalisation of the airline.”
You can read the full statement released by Virgin Atlantic below.
Virgin Atlantic spokesperson said: “Virgin Atlantic attended court yesterday (4th August) as part of a solvent recapitalisation process under 26(A) of the UK Companies Act 2006. That process is proceeding with the support of the majority of our creditors.
“Following the UK hearing held yesterday (4th August), ancillary proceedings in support of the solvent recapitalisation were also filed in the US under their Chapter 15 process. These ancillary US proceedings have been commenced under provisions that allow US courts to recognise foreign restructuring processes.
“In the case of Virgin Atlantic, the process we have asked to be recognised is a solvent restructuring of an English company under Part 26A of the English Companies Act 2006.”
Background
This is not a Chapter 11 bankruptcy filing. It is a filing which supports the solvent recapitalisation of the airline.
We’re continuing to operate a limited schedule flying to Hong Kong, New York, Los Angeles and Barbados from our London Heathrow base and these 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 request refunds and these are being processed; and our people are ready to ensure you fly safe and fly well.
Statement on UK Court Hearing on 4/8
A Virgin Atlantic spokesperson said: “In order to progress the private-only solvent recapitalisation of the airline, the Restructuring Plan is going through a court-sanctioned process under Part 26A of the Companies Act 2006, to secure approval from all relevant creditors before implementation. With support already secured from the majority of stakeholders, it’s expected that the Restructuring Plan and recapitalisation will come into effect in September. We remain confident in the plan.”
Background
The Restructuring Plan was announced on 14 July 2020. Yesterday’s court hearing was procedural. At that hearing Virgin Atlantic obtained an order from the Court to convene meetings of affected creditors to vote on the Restructuring Plan on 25 August.
