British airline Virgin Atlantic Airways, which has assets and leading business, including in the United States, 49% of which belongs to the American Delta Airlines, filed a claim for bankruptcy protection in the Southern District of New York.
Chapter 15 of the US Bankruptcy Code: “Law on Prevention of Abuse in Bankruptcy and Consumer Protection” allows foreign companies with assets in the US to protect themselves from claims from creditors and the courts, while they are working on the recovery and restructuring plan at homeland.
“The process we are asking for is a viable restructuring of the British company,” a Virgin representative said due to Chapter 15. The company reported that the British process continues with the support of the majority of creditors.
The example of Virgin is not alone and reflects the problematic situation in the whole global aviation industry. The three largest airlines in Latin America – Latam Airlines Group SA, Avianca Holdings SA and Grupo Aeromexico SAB also reorganized in the court in bankruptcy cases in New York.
According to Bloomberg Intelligence, at least four US regional airline experienced a crisis, and revenues of major international carriers may fall by 66% this year.
In July, Virgin announced that company is seeking financing package of $ 1.6 billion. (£ 1.2 billion) and hopes for restructure in September, including attempts to change lending terms and renegotiate the lease on most of aircraft, if the claim is approved. Virgin Atlantic said that in September will not be able to meet own obligations on loans.
According to media reports, Delta has allowed Virgin to defer payments and hedge fund Davidson Kempner agreed to provide for company $ 220 million. (170 mln. Pounds).
In a statement, Delta said: «Delta still strongly supports the partner Virgin Atlantic, as the airline continues fully funded recapitalization plan, which was announced in July.”
The company expects to receive other funds from shareholders, and possibly private investors.
According to the submitted documents to the court by Virgin Atlantic, this year the number of airline bookings fell by 89% compared to the year before, and passenger traffic fell to about 25% from the level of 2019.
“The group and its business have been negatively affected by the ongoing COVID-19 pandemic, which has led to an almost unprecedented shutdown of the global passenger aviation industry,” said Virgin Atlantic management. “International aviation was one of the first areas affected by the pandemic COVID-19 and probably will be one of the last to fully recover.”
According to industry experts, the recovery will take several years.
In the face of heavy losses due to the pandemic, the US government has allocated ten domestic airlines, including the four largest, assistance under the “Wage Support Program” in the amount of more than $ 25 billion. Part of this state aid ends on September 30, several major US airlines have warned about potential layoffs tens of thousands of employees.
Before starting flights, Boeing will need to comply with a number of regulatory requirements – retrain pilots and update aircraft software. Boeing shares in the premarket rose by 6.73% to $ 234.16 per share, according to previous trading data. The head of the US Federal Aviation Administration (FAA), Steve Dickson, has signed an order allowing […]
Shares of General Motors, down by 3.7% since the beginning of the year, rose by 3.9% in trading after the company announced the results of the 3rd quarter, which ended on September 30. General Motors reported earnings per share increase of 65% to $ 2.83, which was higher than analysts expected $ 1.38. The amount […]
Deutsche Lufthansa reported that it suffered a loss of 1.97 billion euros in the third quarter of 2020 against a net profit of 1.15 billion euros a year earlier. The carrier’s revenue fell by 74% to 2.66 billion euros from 10.11 billion euros a year earlier. Adjusted loss before tax and interest payments (EBIT) was […]
AMC Entertainment Holdings, which owns the world’s largest network of cinemas, presented its financial report for the third quarter of 2020. His company ended with a net loss of $ 906.5 million – 16.5 times worse than last year. In the third quarter, the company’s cinemas began to reopen after a five-month of lockdown due […]
Shares of Alphabet, which rose 18.2% over the past 6 months, rose 9% after closing trading on Thursday when the global advertising giant announced significant improvements in the reporting quarter. Google’s parent financial report far exceeded analysts’ expectations and showed a resumption of advertising revenue growth after reporting a drop in revenue for the first […]
The net loss of the second largest American oil and gas company Chevron, which accounts for the parent company, in the first nine months of 2020 amounted to 4.878 billion dollars against a profit of 9.534 billion dollars a year earlier, the company said. The diluted loss per share was $ 2.63 against earnings of […]
On Tuesday, JPMorgan Chase announced the launch of its mobile payment service QuickAccept, and on Wednesday, Visa launched its application called Tap to Phone. The purpose of both programs is to offer sellers an easy way to accept contactless payments from customers via a smartphone or tablet. According to Visa, in the context of the […]
Shares of AT&T, which have lost 27.6% of value since the beginning of the year, rose up to 5.8% on Thursday after the publication of better-than-expected Wall Street analysts, earnings for the 3rd quarter, which ended on September 30. AT&T reported earnings per share of $ 0.76, which is 19% below last year’s value, but […]
According to the sources, “Gazprom”, JSC demands to annul the decision of the Antimonopoly Committee of Ukraine (AMCU) of the fine in the amount of 85.966 billion UAH through the Commercial Court of Kiev. The claim is registered in the court on April, 12. “Naftogaz of Ukraine” and “Ukrtransgaz” must be the third parties in […]Next
By the end of this year, the ministry is going to form all the Supervisory Boards. Ministry of Economic Development and Trade (MEDT) plans to appoint the independent Supervisory boards for the 15 largest public companies in Ukraine before the end of this year. This was reported by Yulia Kovalev, Deputy Minister. “The Ministry of […]Next
Introduced five years ago in Amazon’s warehouses the robots did not make the life easier for the employees – on the contrary, people are now forced to work four times faster. In addition, the robotics has brought Amazon warehouses to the record 14,000 serious injuries by the end of 2019. The current figures are to […]Next
Unfortunately, most businesses in our country learn about foreign investments from the media but not directly from their own production facilities. Despite the recent positive changes in the state, we still can’t talk about a high or at least a satisfactory level of foreign direct investment in the Ukrainian economy. FOREIGN DIRECT INVESTMENT According to […]Next
Bank Arkada was declared insolvent due to a reduction in capital. The head of the National Bank Kyrylo Shevchenko spoke about the reasons for the bank’s withdrawal from the market on Wednesday, August 26. “The reason for withdrawing the bank from the market is to reduce the capital ratio to less than one third of […]Next
Participating FIS client banks will be able to send and receive large-ticket international corporate payments quickly and securely KYIV – May 15, 2019 – Visa Inc. (NYSE:V) and FIS are joining forces to enable FIS’ commercial financial institution clients to quickly and securely access the Visa B2B Connect platform globally*. Visa B2B Connect will be […]Next
Intel Corp. sells to South Korean the SK Hynix Inc. unit in the field of manufacture NAND memory chips and the storage devices for $ 9 billion. The agreement includes manufacturing operations for NAND chips SSD-drives, NAND components and semiconductor wafers, said in the press release from Intel. SK Hynix will also receive the plant […]Next
The investment company Prosperity Capital Management has concentrated 7.93% of global depositary receipts (of GDR) of the largest Ukrainian producer of poultry – agricultural holding “MHP” (MHP). According to a report on the website of the London Stock Exchange on Friday, now the company owns 8,000,000 789,186 GDR. According to the information at Prosperity Capital […]Next
Natural person – citizen of Ukraine Vadym Ermolaev will gain control over the company AC-Terra International Ltd. due to the resolution of Antimonopoly Committee (AMCU). This information was made public on its website of Interfax. Accordingly with the information, which published the Antimonopoly Committee on its website, AC-Terra International implements agricultural technical equipment of the […]Next
Large investors of the Ferrari – Exor and Piero Ferrari holding company, made a pact that will protect the corporation from hostile takeovers. Ferrari feared for his integrity after it will be separated from the Fiat Chrysler in the beginning of the next year. Investors are joining forces to make all actions together and consulting […]Next
National Bank of Ukraine adopted a decision to revoke the banking license and liquidate the PJSC CB “Premium” for violation of banking legislation in the sphere of financial monitoring. This is stated in the resolution of the National Bank № 68 / BT, dated February 10, 2016, said the press service of the regulator. “The […]Next
Indian Pharmaceutical Manufacturers Association unites the representatives of Indian pharmaceutical companies in Ukraine. The executive vice president of the Dr. Reddy’s M. V. Ramana pointed out that Ukraine is one of the key markets in which the activity of the company is focused. International pharmaceutical company Dr. Reddy’s (India) remains optimistic about the Ukrainian pharmaceutical […]Next
Abnormal growth in the value of bitcoin and sharp demand for it is due to the desire of investors to protect their savings from inflation, according to analysts at investment bank Deutsche Bank. Printing machines in the US and the EU will very quickly fill the economy with cheap money, with growing problems in the […]Next
In Ukraine Boyden Global,one of the leaders in the market of personnel recruitment and provision of consulting services will begin work in the nearest future.Executive Search multi-national company. According to Aleksei Dolgikh,the head of the Ukrainian Boyden office: “the working group of specialists is already created and ready to work”. The former director of Pedersen&Partners […]Next
From November 19 to 21, 2018, the key event of the year in the Ukrainian energy sector, the Ukrainian Energy Week ’18, will take place in the NSC “Olimpiyskiy”. Here will meet the most influential representatives of national and foreign companies, which will turn the location into a central place for B2B and B2C communications […]Next
On October 7, 2016, the protest action was organised by Council of lawyers of the Kyiv city and Lawyers Council of Kiev region took place in Kyiv. Though this action will take place under walls of the Verkhovna Rada of Ukraine. However, the problems to which lawyers will pay attention, don’t concern people’s deputies. It […]Next