Virgin Australia Files For Bankruptcy to Shield U.S. Assets

Court filing in New York is designed to protect any U.S. assets while airline restructures under an administrator in an Australian proceeding.

• The carrier, whose shareholders include Richard Branson’s Virgin Group, Singapore Airlines Ltd. and HNA Group Co., was denied a bailout by the Australian government.
• Airline was among first in Asia to fall amid the coronavirus pandemic
• The U.S. filing temporarily blocks creditors from seizing Virgin Australia’s U.S. property or taking court action against the company; meanwhile, the main reorganization action will take place in Australia
• The case is Virgin Australia Holdings Ltd. 20-11024, U.S. Bankruptcy Court, Southern ...