Sunday, 10 May 2020

Virgin Atlantic on the brink of bankruptcy....... Alvarez & Marsal put on standby to restructure and handle the administration of the UK airline half owned by Delta.

Photo Gatwick Airport
The UK airline Virgin Atlantic is said to be on the very brink of bankruptcy after it was revealed the company has put the firm Alvarez & Marsal (A&M) on standby, to do a complete corporate restructuring. 

Alvarez & Marsal (A&M) specialise in restructuring firms that are either bankrupt or on the verge of doing so, previous clients include Lehman Brothers and the giant US retail store chain Target.  It's understood the firm is already acting on a consultancy and is looking at bringing forward options for a so-called pre-pack administration that would see a restructured and financially viable Virgin Atlantic come out the other side of the current coronavirus crisis. 

US commentators have indicated that Delta Air Lines which owns almost half of Virgin Atlantic had insisted Alvarez & Marsal (A&M) be taken on, while UK commentators have said that it is a legal obligation for the directors of Virgin  Atlantic prepare for such events. 

Investment bankers Houlihan Lokey are also said to be advising the troubled airline that has only recently announced that more than 3000 jobs were on the line as it struggles to survive. There is media speculation that there are at least six serious contenders for interested in taking control of a restructured Virgin Atlantic.

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