Virgin Australia Holdings files Chapter 15 bankruptcy in New York

By Caroline Salls

Pittsburgh, May 1 – Virgin Australia Holdings Ltd. made a Chapter 15 bankruptcy filing on April 29 in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. court recognition of its voluntary administration proceedings pending in Australia.

Vaughan Strawbridge, Salvatore Algeri, John Greig and Richard Hughes of Deloitte Financial Advisory Pty Ltd. have been appointed as the company’s administrators.

The administrators said in a statement filed with the court that some of the foreign Virgin Australia debtors have either issued or guaranteed unsecured notes that are governed by New York law, including $350 million of 7 7/8% unsecured senior notes due 2021 and $425 million of 8 1/8% unsecured senior notes due 2024.

According to the statement, the foreign debtors filed the Australian proceedings “following significant disruption and damage to their airline businesses resulting from the Covid-19 pandemic.”

Virgin Australia is a Brisbane-based airline. The Chapter 15 case number is 20-11024.

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