Virgin Australia has secured recognition from the US Bankruptcy Court for its voluntary administration process, under Chapter 15 of the country’s bankruptcy code.
This protects the carrier’s US assets from creditors and allows Australia’s courts to preside over all claims.
The petition was filed in New York on 29 April, the carrier said today in a disclosure to the Australian stock exchange.
“Formal recognition of the Virgin Australia Holdings Ltd voluntary administration process in Australia has now been granted, recognising the administration proceeding under Australia’s Corporations Act as a foreign main proceeding as defined in Chapter 15 of the US Bankruptcy Code.”
The filing of the petition triggered the application of an automatic stay on creditor action against any assets Virgin Australia entities in administration have or may have in the USA, administrator Deloitte says.
It adds: “The automatic stay also prohibits any attempts to collect on claims and prohibits the commencement of any proceedings against Virgin Australia in the USA. All claims will be addressed in the main Australia proceeding.”
