A345_Leadership Posted August 4, 2020 Share Posted August 4, 2020 https://airwaysmag.com/airlines/virgin-atlantic-files-for-chapter-15-bankruptcy/ Virgin Atlantic Files For Chapter 15 Bankruptcy in New York LONDON – It has emerged that Virgin Atlantic (VS) has filed for Chapter 15 Bankruptcy in the United States of America. It is keen to note that this does not mean bankruptcy in the United Kingdom, where the airline is based. Such Chapter 15 has taken place in the State of New York, which is where a lot of VS’ operations are, featuring New York JFK and Newark. COURT PROCEEDINGS The news comes as the airline telling judges in court for approval of the £1.2 billion rescue package formed last month. According to Bloomberg, without such funds, available cash will drop to about £49m by next month. This is below the £75m required in bondholder contracts to remain afloat. It ultimately turns out that the sale of Heathrow Airport slots against the bonds in question would cause the airline to fold. The airline will on August 25 to vote on the restructuring process. Three of the creditors will agree to back it in advance, parties still due to decide. A spokesperson for Virgin Atlantic gave confidence over this deal. “With support already secured from the majority of stakeholders, it’s expected that the restructuring plan and recapitalization will come into effect in September”. Restructuring by September 2 is the magic date of which the airline needs to meet all the criteria. WHAT IS A CHAPTER 15? A Chapter 15 Bankruptcy is a bit different to the normal Chapter 11’s that you see in the U.S. This element of bankruptcy relates to foreign companies such as VS wgho have US assets looking to reorganise. It is a secondary bankruptcy filing which does not represent an overall collapse. This is a developing story! ______________________________________________ A Delta agora três empresas que investiu em concordata: LATAM, Aeromexico e Virgin. Só salvaram a CZ e a KE. Quote Link to post Share on other sites
A345_Leadership Posted August 4, 2020 Author Share Posted August 4, 2020 Virgin Atlantic Seeks Rescue Approval as Cash Running Out By Ellen Milligan and Christopher Jasper 4 de agosto de 2020 09:42 BRT Updated on 4 de agosto de 2020 11:14 BRT Richard Branson’s Virgin Atlantic Airways Ltd. told a London court that it will run out of cash next month unless it secures approval for a 1.2 billion-pound ($1.6 billion) rescue package announced in July. Without the funds, available cash will drop to about 49 million pounds by late September, below the 75 million pounds specified in bondholder contracts, Virgin told a judge Tuesday. That would require the sale of Heathrow airport slots against which the bonds are secured, forcing the carrier to fold. Virgin Atlantic said it obtained an order from the court to convene four creditor meetings on Aug. 25 to vote on the restructuring as part of a process that will bind all debt classes to the rescue plan. The carrier said that creditors in three of the groups have agreed in advance to back it. “With support already secured from the majority of stakeholders, it’s expected that the restructuring plan and recapitalization will come into effect in September,” a spokeswoman said. “We remain confident in the plan.” The restructuring must be approved at a hearing scheduled for Sept. 2, after the creditor meetings, or will be placed into administration mid-month with any assets sold, David Allison, a lawyer for the company, told the court. Virgin Atlantic unveiled the rescue plan on July 14 after the coronavirus crisis shut down flights and the carrier was told that its credit ratings disqualified it from support through a state-backed loans program. Under the proposals, U.S. hedge fund Davidson Kempner Capital Management will provide about 170 million pounds in secured financing, while Branson himself will contribute 200 million pounds after raising money from space venture Virgin Galactic Holdings Inc. The plan also includes 450 million pounds of creditor deferrals and 400 million pounds of payment delays or waivers from Branson’s Virgin Group and co-owner Delta Air Lines Inc. Virgin proposals for the creditor groups: A fully drawn $280 million revolving credit facility secured against aircraft and engines will become a term loan with a longer maturity and a margin that’s 1% higher. One engine will be freed up to be used as security for a new $30 million facility. Plane-leasing firms that own 24 Virgin jets will be offered three options: a 15% cut in fees until September next year at least, an 80% reduction for the full term, or the termination of leases and the return of aircraft in their current condition. So-called connected creditors including 49% shareholder Delta will get preference shares in return for capitalization of money owed. Trade creditors will take a 20% haircut, with 10% of the remaining balance paid in cash and the rest in quarterly sums through September 2022. Suppliers of goods and services critical to Virgin, such as airports, will be exempt from the proposals. — With assistance by Antonio Vanuzzo (Updates with company comment in fourth paragraph, proposed creditor restructuring in last) https://www.bloomberg.com/news/articles/2020-08-04/virgin-atlantic-seeks-rescue-signoff-to-avoid-september-collapse Quote Link to post Share on other sites
PR-FHI Posted August 5, 2020 Share Posted August 5, 2020 https://aeromagazine.uol.com.br/artigo/britanica-virgin-atlantic-entra-com-pedido-de-falencia-nos-eua_5610.html Quote Link to post Share on other sites
A345_Leadership Posted August 5, 2020 Author Share Posted August 5, 2020 2 hours ago, PR-FHI said: https://aeromagazine.uol.com.br/artigo/britanica-virgin-atlantic-entra-com-pedido-de-falencia-nos-eua_5610.html Eu acho temerário colocar no título falência em vez de concordata, o que de fato aconteceu. Além disso, 30 anos de operações lucrativas? A VS luta para fechar no azul há uns 10-15 anos, pelo menos. Quote Link to post Share on other sites
TheJoker Posted August 5, 2020 Share Posted August 5, 2020 6 hours ago, A345_Leadership said: Eu acho temerário colocar no título falência em vez de concordata, o que de fato aconteceu. Além disso, 30 anos de operações lucrativas? A VS luta para fechar no azul há uns 10-15 anos, pelo menos. 2014 prejuízo (138.9) milhões de libras 2015 lucro 80.1 2016 187.3 2017 (65.6) 2018 (38.4) https://corporate.virginatlantic.com/gb/en/annual-reports.html Quote Link to post Share on other sites
A345_Leadership Posted August 6, 2020 Author Share Posted August 6, 2020 20 hours ago, TheJoker said: 2014 prejuízo (138.9) milhões de libras 2015 lucro 80.1 2016 187.3 2017 (65.6) 2018 (38.4) https://corporate.virginatlantic.com/gb/en/annual-reports.html Depois da Crise de 2008 parece que a empresa não conseguiu entrar no rumo, só com a ajuda da Delta: Quote Link to post Share on other sites
51Tucano Posted August 6, 2020 Share Posted August 6, 2020 Entre tantos motivos que levaram a essa situação, um que acho coincidente com o da AVB é "baixar o conquistar o Mundo igual no WAR". Ambas as empresas tinham suas contas em ordem, ai quiseram abrir rotas para tudo quanto é lugar e a "garapa desandou" A AVB não voava para todas as capitais brasileiras, lembro das pessoas aqui no CR reclamando porque não tinha voo pra o estado A, B, C... A Virgin é igual: praticamente suas rotas eram LON-EUA , ai foram querer Africa, Asia, Europa com aeronaves menores.. No fim, deu no que deu... Quote Link to post Share on other sites
A345_Leadership Posted August 7, 2020 Author Share Posted August 7, 2020 3 hours ago, 51Tucano said: Entre tantos motivos que levaram a essa situação, um que acho coincidente com o da AVB é "baixar o conquistar o Mundo igual no WAR". Ambas as empresas tinham suas contas em ordem, ai quiseram abrir rotas para tudo quanto é lugar e a "garapa desandou" A AVB não voava para todas as capitais brasileiras, lembro das pessoas aqui no CR reclamando porque não tinha voo pra o estado A, B, C... A Virgin é igual: praticamente suas rotas eram LON-EUA , ai foram querer Africa, Asia, Europa com aeronaves menores.. No fim, deu no que deu... Mas esta expansão internacional foi bem antes, final de década de 1990. Quando a DL entrou as rotas como para Tokyo, Cape Town, Dubai, Vancouver, Mumbai e Sydney foram cortadas e concentradas no Atlântico Norte, ao ponto de muitas chamarem de Delta Atlantic. A Pandemia afetou mais o passageiro longhaul, o principal negócio da Virgin. Além disso, a empresa infelizmente está datada, um dos vestígios da década de 1990. De ameaça à BA passou a ser uma concorrente qualquer. 1 Quote Link to post Share on other sites
Stelios4K Posted August 7, 2020 Share Posted August 7, 2020 14 hours ago, A345_Leadership said: Mas esta expansão internacional foi bem antes, final de década de 1990. Quando a DL entrou as rotas como para Tokyo, Cape Town, Dubai, Vancouver, Mumbai e Sydney foram cortadas e concentradas no Atlântico Norte, ao ponto de muitas chamarem de Delta Atlantic. A Pandemia afetou mais o passageiro longhaul, o principal negócio da Virgin. Além disso, a empresa infelizmente está datada, um dos vestígios da década de 1990. De ameaça à BA passou a ser uma concorrente qualquer. Exatamente. O maior problema da Virgin são o foco nos longhauls e não ter "domesticos"na europa por exemplo, o que ta segurando um pouco a BA,AF,KL,LH etc por exemplo. Não muito, mas o "suficiente". Virgin foi aquele jogador com 17 anos que era promessa para ser o melhor do mundo e ganhar uma copa do mundo, mas anos depois já trocou 7-8 times em menos de 10 anos ficando no só "promessa q não virou" 2 Quote Link to post Share on other sites
Luckert Posted August 7, 2020 Share Posted August 7, 2020 15 hours ago, A345_Leadership said: Mas esta expansão internacional foi bem antes, final de década de 1990. Quando a DL entrou as rotas como para Tokyo, Cape Town, Dubai, Vancouver, Mumbai e Sydney foram cortadas e concentradas no Atlântico Norte, ao ponto de muitas chamarem de Delta Atlantic. A Pandemia afetou mais o passageiro longhaul, o principal negócio da Virgin. Além disso, a empresa infelizmente está datada, um dos vestígios da década de 1990. De ameaça à BA passou a ser uma concorrente qualquer. Os voos domésticos não necessariamente representam o sucesso ou fracasso da Virgin, ela nunca quis e sobreviveu por anos. A Lufthansa criou a Eurowings e manteve voos LH para seus Hubs e mesmo assim,nenhuma das duas da lucro, não fossem os internacionais e a Swiss, não teriam lucro há tempos Quote Link to post Share on other sites
A345_Leadership Posted August 25, 2020 Author Share Posted August 25, 2020 Virgin diz que tem caixa até para setembro se o resgate não for aprovado. https://airwaysmag.com/airlines/virgin-atlantic-will-run-out-of-money-unless-bailout-approved-by-end-of-september/ Quote Link to post Share on other sites
Luckert Posted August 25, 2020 Share Posted August 25, 2020 1 hour ago, A345_Leadership said: Virgin diz que tem caixa até para setembro se o resgate não for aprovado. https://airwaysmag.com/airlines/virgin-atlantic-will-run-out-of-money-unless-bailout-approved-by-end-of-september/ Só até setembro? Porque não entraram antes no Chapter 11? Esperaram chegar a este ponto? A Latam entrou em maio no capítulo 11 quando ainda tinha 1,3 bi de dólares em caixa e a garantia do empréstimo de 900 milhões de dólares dos próprios sócios....e tb está mal Quote Link to post Share on other sites
Stelios4K Posted August 25, 2020 Share Posted August 25, 2020 https://www.flightglobal.com/strategy/virgin-atlantic-creditors-back-rescue-plan/139891.article#.X0WF_sbbiMI.twitter Virgin Atlantic creditors back rescue plan By Graham Dunn25 August 2020 Virgin Atlantic’s recapitalisation efforts have been boosted after creditors voted in favour of its restructuring plan. In July, the carrier detailed a proposal for a privately-funded solvent recapitalisation under a court-sanctioned process in the UK. The five-year business plan, which is supported by existing shareholders Delta Air Lines and Virgin Group, envisages roughly £1.2 billion ($1.6 billion) in refinancing over the next 18 months. The carrier has previously warned that without the capital injection as part of the restructuring it would run out of cash by 28 September. ”Today, Virgin Atlantic has reached a significant milestone in safeguarding its future, securing the overwhelming support of all four creditor classes, including 99% support from trade creditors who voted in favour of the plan,” the airline says. It says the next step is for a UK High Court hearing on 2 September to sanction the restructuring. ”We remain confident that the plan represents the best possible outcome for Virgin Atlantic and all its creditors and believe that the court will exercise its power to sanction the Restructuring Plan, at a hearing scheduled on 2 September.” That will be followed by a US Chapter 15 procedural hearing on 3 September to recognise Virgin Atlantic’s restructuring plan in the USA. Virgin made the Chapter 15 filing in support of its restructuring in the UK. “Achieving this milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies as soon as they are ready to travel.” Shareholders are providing around $600 million in support over the life of the plan, including a £200 million investment from Virgin Group, and £400 million of shareholder deferrals and waivers. Investment firm Davidson Kempner Capital Management is also providing £170 million of secured finance, while creditors are supporting the airline with over £450 million of deferrals. Quote Link to post Share on other sites
A345_Leadership Posted September 2, 2020 Author Share Posted September 2, 2020 UK court formally backs Virgin Atlantic restructuring plan By Graham Dunn2 September 2020 Virgin Atlantic has completed another step in its planned recapitalisation after a court today approved its restructuring plan. Creditors had on 25 August backed the plan, which envisages roughly £1.2 billion ($1.6 billion) in refinancing over the next 18 months. Source: Heathrow Airport “Today, Virgin Atlantic attended an English High Court hearing where the restructuring plan was formally sanctioned,” an airline spokesperson says. ”A US procedural hearing will follow tomorrow, 3 September, ensuring the restructuring plan is recognised in the USA, paving the way for completion of the £1.2 billion private only, solvent recapitalisation of Virgin Atlantic.” The carrier had previously warned that without the capital injection as part of the restructuring it would run out of cash by 28 September. Shareholders are providing around £600 million in support over the life of the plan, including a £200 million investment from Virgin Group, and £400 million of shareholder deferrals and waivers. Investment firm Davidson Kempner Capital Management is also providing £170 million of secured finance, while creditors are supporting the airline with over £450 million of deferrals. The UK carrier, which resumed passenger services on 20 July, will this month add London Heathrow flights to Atlanta, Lagos, Tel Aviv and the Indian cities of Delhi and Mumbai to its network. https://www.flightglobal.com/strategy/uk-court-formally-backs-virgin-atlantic-restructuring-plan/140006.article Quote Link to post Share on other sites
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