Virgin Atlantic filed bankruptcy

[tom bhayya]

Executives say the move is part of a court process to restructure the company’s finances, and has the support of the airline’s major creditors and owners. Delta Air Lines, which holds a 49 percent stake in Virgin Atlantic, has agreed to defer payments it is owned, and hedge fund Davidson Kempner has agreed to loan the airline nearly a quarter of a billion dollars.

We have taken a big step forward in securing our future by launching a court-backed process as part of a solvent recapitalization of the airline,” said a statement from Virgin Atlantic. “The approval process is in motion and we expect the recapitalization to come into effect in September.”