Aug 05, 2020
Virgin Atlantic Airways seeks bankruptcy protection under Chapter 15
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Virgin Atlantic planes are seen at Heathrow airport. London, Britain, May 5, 2020.Toby Melville | Reuters
Virgin Atlantic Airways is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code, which allows a foreign debtor to shield assets in this country, according to a court filing on Tuesday.
Virgin Atlantic's filing in U.S. bankruptcy court in the southern district of New York said it has negotiated a deal with stakeholders "for a consensual recapitalization" that will get debt off its balance sheet and "immediately position it for sustainable long-term growth."
The U.S. filing is in addition to a proceeding filed in a British court, where Virgin Atlantic obtained approval Tuesday to convene meetings of affected creditors to vote on the plan on Aug. 25.
A Virgin Atlantic spokeswoman said the restructuring plan was before a British court "to secure approval from all relevant creditors before implementation."
Bloomberg reported Virgin Atlantic told a London court it could run of money in September if a restructuring deal is not approved. Non-U.S. companies use Chapter 15 to block creditors who want to file lawsuits or tie up assets in the United States.
In July, the airline said its private deal with stakeholders eliminates the need for support from the British government that billionaire founder Richard Branson had sought. The reorganization is expected to be completed towards the end of this summer and be spread across the next 18 months.
The airline, 51% owned by Branson's Virgin Group and 49% by U.S. airline Delta, closed its Gatwick base and cut more than 3,500 jobs to contend with the fallout from the COVID-19 pandemic, which has grounded planes and hammered demand for air travel.
It said it needed to recapitalize "to not only survive the exigent threats posed by the COVID-19 global pandemic but to thrive once the immediate global health crisis passes."
In July, Virgin Atlantic said it has agreed a rescue deal with shareholders and creditors worth 1.2 billion pounds ($1.57 billion) to secure its future beyond the coronavirus crisis.Virgin said in a court filing reservations are down 89% from a year ago and current demand for the second half of 2020 is at approximately 25% of 2019 levels. Virgin Atlantic also owns Virgin Atlantic Holidays, a tour operator business and Virgin Atlantic Cargo.
The high-profile Branson had attracted criticism after calling for government help for Virgin Atlantic to survive the downturn.Related Tags
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Kentucky Attorney General Daniel Cameron seeks to delay release of Breonna Taylor grand jury recordings
The attorney general's office filed a motion on Tuesday that seeks to give it another week to release the recordings, claiming that it needs additional time to make sure private citizens' personal information is redacted, according to WLKY. The recording is more than 20 hours long in total. The development came a day after a judge ordered the office to release the information, and it had initially said the recordings would be released on Wednesday.
"For its grounds, the Commonwealth states that in the interest of protection of witnesses, and in particular private citizens named in the recordings, the Commonwealth seeks to redact personal identifiers of any named person, and to redact both names and personal identifiers of any private citizen," the motion reads.
The judge presiding over Brett Hankinson's case, the only former Louisiana law enforcement official to be charged for his role in the raid that resulted in Taylor's death (though the charges were not tied to her death), ordered the grand jury recording released.
Cameron, in his filing, noted that Hankison's legal representation agreed with the delay.
Hankison was charged with three counts of first-degree wanton endangerment earlier this month. Prosecutors allege that Hankison endangered Taylor’s neighbors after he responded to one shot being fired at the officers by Taylor's boyfriend by firing his weapon into a neighboring apartment. If convicted, Hankison, who was fired from the police department, could face up to five years in prison for each count. The other two officers involved in the March raid were not charged.
The death of Taylor, a black 26-year-old black emergency room technician, and the limited charges that were handed down as a result of the raid, prompting a wave of protests.
One of the grand jurors filed a motion in Jefferson County earlier this week for the court to release all records in the investigation.
The juror, who is not named in the Monday court filing, said through their lawyer that they want more details about what happened in the proceedings opened up to the public so that “the truth may prevail.”News Breonna Taylor Kentucky Law Enforcement