Virgin Atlantic filed for Chapter 15 bankruptcy protection in New York on Tuesday as the COVID-19 pandemic hammers the airline industry. The airline, founded by British businessman Richard Branson, made the filing in U.S. federal bankruptcy court after a proceeding in the United Kingdom. A spokesperson for Virgin Atlantic says the bankruptcy is part of a court process to carry out a restructuring plan that the airline announced last month. Virgin's sister airline, Virgin Australia, filed for protection from creditors in its home country in April. Virgin Atlantic said last month that it raised $1.8 billion Cdn from private sources, including Branson himself, to shore up its battered finances.

Source: CBC News August 05, 2020 01:18 UTC