Virgin Atlantic files for bankruptcy

New York: Virgin Atlantic has applied for bankruptcy protection in the United States, court filings show, as the British airline -- which has not flown since April because of coronavirus -- seeks to tie up a rescue deal in the UK.

The company -- part-owned by Richard Branson -- grounded its planes in April because of the pandemic but announced plans for private funding worth 1.2 billion pounds ($1.5 billion) in July, what it called a "major milestone towards securing its future."

A court filing showed Virgin Atlantic sought Chapter 15 bankruptcy in New York on Tuesday, a move that would protect its US assets as a foreign debtor while it seeks approval in the UK from creditors for the rescue plan. In court proceedings currently underway in Britain, Virgin Atlantic was given approval on Tuesday to hold creditor meetings to vote on the rescue plan.