Virgin Atlantic May Run Out Of Cash In September, Company Warns

Virgin Atlantic has said that it could run out of cash by september if creditors do not approve a £1.2bn rescue deal.

The distress was against the backdrop of the impact of Covid- 19 on the global aviation industry.

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Sir Richard Branson’s Virgin Atlantic consequently filed for bankruptcy under the chapter 15 of the US bankruptcy code.

The company seeks to protect its interest under the US bankruptcy code.

Virgin said the company is “fundamentally sound”, adding that it needed the fund to secure its future from the impact of the pandemic.

The company told a court in London that the airline’s cash flow would drop to “critical levels” by the middle of September.

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According to Virgin, it would “run out of money altogether” by 28 September this year.

The company in July reached a rescue deal with creditors amounting £1.2bn ($1.6bn) to secure the country post Covid- 19.

The company said the $1.6bn deal from creditors needed a court-sanctioned process.

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