UK-based airline, Virgin Atlantic, has filed for bankruptcy in the USA after months of troubles, primarily caused by the impact COVID-19 has had on the travel industry.
This is the second international airline under the Virgin brand to make this move, after Virgin Australia fell into administration in April.
Virgin Atlantic is seeking protection under chapter 15 of the US bankruptcy code, which allows a foreign debtor to shield assets in the country from further sanctions until a resolution is complete.
The airline’s decision comes only a month after the it announced that it had agreed a rescue deal worth £1.2bn to secure its future Post-COVID-19. As part of this funding, Richard Branson’s Virgin Group injected £200m.
Branson had a request for UK government money rejected, leaving the airline in a race against time to secure new investment. The rest of the funding was made up by existing investors.