British Airways To Cut 12000 Jobs

Be interesting to see what’s offered. Is she a long standing employee?
That’s the point. Long serving employees to be transferred to newer, utterly crap contracts.
 
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.
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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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.

View attachment 495895
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.

Quoting from the United States Courts website

"The purpose of Chapter 15, and the Model Law on which it is based, is to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country."

A Chapter 15 filing is a filing for Bankruptcy in the United States. If the US Courts accept that any actual or pending proceedings outside of the USA are the "Main Proceedings" then any proceeding by creditors within the US are automatically stayed and referred to the country whee the "Main Proceedings" take place.

Make no mistake; Virgin have applied for Bankruptcy in the United States; a company cannot have file Chapter 15 unless it has insolvency proceedings either pending or in place in another country.

What you describe as happening to Virgin is exactly what happens when businesses are approaching insolvency; confidence collapses. Mariginal solvency rapidly becomes insolvency which, if not dealt with becomes bankruptcy.
 
That’s the point. Long serving employees to be transferred to newer, utterly crap contracts.
Remember - Mixed Fleet cabin crew were already on contracts only slightly less crap than Worldwide etc are being offered now.

I'm afraid they'll get little in the way of sympathy from Mixed Fleet as many of them will still be earning much more. BA's Mixed Fleet cabin crew contract is appalling and relies on a continual churn of naive 18 year olds to replace for whom it is barely a living wage.
 

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