The company, which is based in the UK, applied for Chapter 15 bankruptcy protection in New York on Tuesday.
Virgin Atlantic has not been immune to the aviation industry’s pandemic problems. In July, the company received a £ 1.2 billion (£ 1.5 billion) bailout deal to hold the airline’s solvent just days before resuming passenger flights.
The carrier said the recapitalization plan would be distributed over 18 months and has the support of shareholders, new investors and existing creditors.
Virgin Atlantic could not be reached immediately for comment Tuesday night.
Global air travel is not expected to fully recover from the downturn until 2024, according to the International Air Transport Association, which represents 290 airlines. The group blamed the sluggish recovery on several factors, including a lack of consumer confidence, the decline in business travel and fresh coronavirus spikes in the United States and elsewhere.
—Hanna Ziady contributed to this report