What is Chapter 15 bankruptcy? Virgin Atlantic explained - Business Insider

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What is Chapter 15 bankruptcy? Here's what to know about the obscure protection Virgin Atlantic is seeking

in New York on Tuesday, becoming the latest airline forced into reorganization during the coronavirus pandemic.

Chapter 15 is an obscure part of the US Bankruptcy Code designed to facilitate cooperation between US courts and foreign bankruptcy courts. It was added to the code in 2005 by the by the Bankruptcy Abuse Prevention and Consumer Protection Act, and replaced section 304 of the code. The courts can coordinate, and debtors are protected from creditors coming after US-based assets while a bankruptcy hearing is held in another country.

 

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