Virgin Atlantic filed for Chapter 15 bankruptcy in New York on Tuesday. It’s not been the best of years for Sir Richard Branson’s Virgin Brand – or anyone else’s. – but Virgin has taken a beating. In April, Virgin Australia filed for voluntary administration — a form of bankruptcy in Australia, and the much ballyhooed launch of Virgin Voyages has been pushed back from April to October. Now this.

The London based carrier which is 49% owned by Delta Air Lines, was forced, as were other carriers, to ground all passenger operations in April due to the global pandemic. In May it announced it would cut over 3,000 jobs, closed its London Gatwick base, and consolidated its operation to Heathrow. It also has US offices in New York and Atlanta.

Virgin began some flights last month, but with travel restrictions still in place, and many consumers still reluctant to fly, the company has struggled.

Chapter 15 is a form of bankruptcy designed for companies that involve multiple countries – it  allows foreign businesses to file for bankruptcy in the US court system. Essentially, it protects Virgin’s US assets from creditors as a UK court oversees claims.

This does not mean the airline is going into liquidation, or immediately going out of business. However, in a London court hearing prior to Tuesday’s announcement, Virgin Atlantic said it is looking for a rescue package of US $1.6 billion, and that without it, the airline will run out of cash as early as mid-September.

A restructuring package will allow Branson to retain his 51 percent stake in the firm, he has also said he will sell Necker, his private island, to save the company. The judge in the case has approved a meeting allowing creditors to vote on the restructuring plan.

‘The ongoing COVID-19 pandemic has had an adverse impact on not only [Virgin Atlantic], but the aviation industry as a whole, occasioning the near shutdown of the global passenger aviation industry,’ the company’s lawyers wrote in Tuesday’s filing.

‘While [Virgin Atlantic] has taken various measures to manage its liquidity in light of the unprecedented financial and operating conditions it faces, a more comprehensive recapitalization is necessary to secure the future of its business and ensure that it is able to meet its liabilities and funding requirements beyond mid-September 2020.’

Delta CEO Ed Bastian has said previously that Delta would not offer a cash injection to save Virgin Atlantic from a possible bankruptcy restructuring. UK foreign ownership laws prevent Delta or any other foreign investor from increasing its stake in the airline.