Er, no.Virgin Atlantic have filed for Chapter 15 bankruptcy in New York. Chapter 15 covers cross-boarder insolvency; basically their are seeking to protect their US assets whilst insolvency proceedings take place in another country.
Rubbish. "Chapter 15" refers to Chapter 15 Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It's the US adoption of the UN Model Law on Cross-Border Insolvency.Er, no.
Ch 15 is a mechanism to allow trans national solvent recapitalisation.
This is part of the problem; people see “Virgin going bust” posts on social media and either cancel existing bookings or decide not to book in the first place. The result for the airline is the same, cash flow / cash on hand is impacted as the flow out accelerates and the flow in reduces.
This has a very serious implication for Virgin as there is a £75m threshold clause in some of its loans whereby if they dip below this figure they are deemed to have defaulted, regardless of repayment history.
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Remember - Mixed Fleet cabin crew were already on contracts only slightly less crap than Worldwide etc are being offered now.That’s the point. Long serving employees to be transferred to newer, utterly crap contracts.