Virgin Atlantic Declare Bankruptcy After Pandemic Causes Financial Crash
Amid the financial fallout from the coronavirus, Virgin Atlantic have declared bankruptcy.
This isn't the first time Virgin have shown it's suffering from financial difficulties as Virgin Australia filed for voluntary administration just a few months ago in April.
The company was hoping to stay afloat after bidding for a government bailout but the request was rejected.
Sir Richard Branson (owner of Virgin), offered a mortgage on his world famous private island "Necker Island" in the Caribbean to help push through the deal but was still rejected.
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David Allison QC, for Virgin Atlantic Airways Limited, previously said:
"As a result of the Covid-19 pandemic, the group is now undergoing a liquidity crisis."
“Following the UK hearing held earlier today, 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."
There is however hope for the airline industry as a whole as many airlines have slowly began ramping up flight volume and slowly started returning to popular, low risk destinations. You can find some great bargains at a time like this, we just advise you are sensible about where you choose to travel and to follow common sense safety procedures.
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