Virgin in the doo-doo?

[AtomKraft]

I was surprised to see that Virgin Atlantic has entered chapter 11.



Why would Sir Richard watch his baby go down the ****?

[G-CPTN]

AIUI, Chapter 11 provides protection against claims that could bankrupt the company.

[PHXPhlyer]

Chapter 11 is bankruptcy.
It allows for reorganization of debt rather than Chapter 7 which is liquidation.

PP

[AtomKraft]

True, CPTN.

In the UK though, if you reach this point, yer bust!

edit. Saw your post PHX. Looks like bust, it is.

[G-CPTN]

General Motors and United Airlines emerged from Chapter 11.

[CremeEgg]

Branson is no fool. He will have been advised by a bunch of crooks lawyers that this is the way to reduce his liabilities and ensures that he pays the absolute minimum in taxes to the UK. A great publicist and in fairness to him when he took his company back into private hands he paid shareholders what they paid when he went public. Not too surprisingly he didn't seem to like the way that the Stock Exchange wanted to examine his books as a public company.

[Undried Plum]

General Motors and United Airlines emerged from Chapter 11.

They were Murricane companies competing against furrin companies. Vaginal Atlantic doesn't have that preferential status. It's a subset of the ghastly Delta/Continental nexus. Jettisonable.

The best they can hope to do is to outlast Norwegian by a few months.

It's a pity, but it's the law of the jungle. Remember SkyTrain? Highland Express?

[AtomKraft]

FWIW...not much probably, I think Branson smelleth the coffee.

It's kinda over for airlines, until further notice.

The World has chosen, (well nobody asked anyone, but..) to destroy our economy- would you want to run an airline?

If I had 4.9bn, I'd be keeping it close.

[AtomKraft]

Best thing to do; Throw it, and all its employees under the nearest bus....

[Undried Plum]

Best thing to do; Throw it, and all its employees under the nearest bus....

Sounds like a Harvard MBA thesis in the making.

Please keep us all informed of the progress in your learning of how humans work.

[G-CPTN]

The assets of an airline (aircraft and slots) must be a decaying virtue (at least for the next five years).

[AtomKraft]

Undried.
Whorish.
Folk like Branson, Willie Walsh have no real goals.

[AtomKraft]

Plum.
For your info, I flew for Loganair, British Regional AirLines, BA CitiExpress, BA connect and BA CityFlyer.

Loganair was OK, but after that it was cheats unlimited- as we have now found out after our so called 'gold plated' "final Salary" pensions were severely cut.
I know how humans work.

It's arseholes like my ex boss, Mr. Walsh, that I struggle to understand.

[TheGreenGoblin]

I can''t see Virgin coming out of this in the long run. The loans that the bearded one was seeking were to be partly underwritten by the high stock price of Virgin Galactic, another South Sea bubble in the making, and the value of that stock is going south as the the bull market goes bear in the face of an obvious boondoggle!

https://www.fool.com/investing/2020/08/ ... umble.aspx

[1DC]

The article I read said that had entered Chapter 15, is that something different or would it have just been a misprint??

[TheGreenGoblin]

The article I read said that had entered Chapter 15, is that something different or would it have just been a misprint??

Chapter 15 is a form of US temporary protection from international creditors while a bankrupt company attempts to define a plan to work its way out of bankruptcy...

Virgin Chapter 15 bankruptcy

Chapter 15 is an obscure part of the US Bankruptcy Code designed to facilitate cooperation between US courts and foreign bankruptcy courts. It was added to the code in 2005 by the by the Bankruptcy Abuse Prevention and Consumer Protection Act, and replaced section 304 of the code.

In essence, Chapter 15 allows foreign individuals or companies to file for bankruptcy protection in the US in cases where assets in more than one country are involved.

In Virgin Atlantic's case, however, the airline has not filed for administration — a form of bankruptcy in the UK — in London courts yet.

Instead, the airline is working to finalize a £1.2 billion ($1.57 billion) private rescue package with creditors. During a Tuesday court hearing in London, a judge gave the go-ahead for a meeting allowing creditors to vote on the restructuring plan, Bloomberg reported.

[G-CPTN]

Chapter 15

[llondel]

As a former (and possibly future) customer, I got an email this morning from Virgin which explains their version of it.

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.

[Boac]

https://www.aerotime.aero/rytis.beresne ... ntic-funds

[AtomKraft]

Sounds promising!