Virgin Atlantic on Tuesday filed for Chapter 15 bankruptcy protection in the Southern District of New York.
The carrier is seeking approval for a £1.2 billion recapitalization deal, but the carrier on Tuesday said it would effectively run out of cash next month if that package is not approved. Virgin Atlantic has creditor meetings later this month and, if creditors approve, it will have to get the plan approved at a Sept. 2 hearing, according to Bloomberg.
Chapter 15 is a bankruptcy filing specific for cases involving businesses with assets in multiple countries.