Virgin Atlantic gets US court protection from creditors as part of reorganisation plan

Virgin Atlantic’s filing in US bankruptcy court in the southern district of New York said it has negotiated a deal with stakeholders 'for a consensual recapitalisation' that will get debt off its balance sheet and 'immediately position it for sustainable long-term growth'. Picture: Steve Parsons/PA Wire

Virgin Atlantic Airways is seeking protection from creditors in the US under Chapter 15 of the US Bankruptcy Code, which allows a foreign debtor to shield assets in this country, according to a court filing. 

Virgin Atlantic’s filing in US bankruptcy court in the southern district of New York said it has negotiated a deal with stakeholders “for a consensual recapitalisation” that will get debt off its balance sheet and “immediately position it for sustainable long-term growth”.