The company, which is based in the United Kingdom, filed for Chapter 15 bankruptcy protection in New York on Tuesday, which shelters the US assets of foreign companies undergoing restructuring proceedings in their home country.
The US filing followed a UK court hearing earlier the same day, where Virgin Atlantic obtained approval to call a meeting of creditors on August 25 to vote on the restructuring plan.
"The process we have asked to be recognized [in the United States] is a solvent restructuring of an English company... under the English Companies Act," a spokesperson for the company said in a statement.
US hedge fund Davidson Kempner is providing £150 million ($188 million) in secured financing as part of the recapitalization plan, which Virgin Atlantic said will come into effect next month. Richard Branson's Virgin Group is contributing £200 million ($262 million).
"We remain confident in the plan," the Virgin Atlantic spokesperson added.
Virgin Atlantic has already laid off 3,550 staff and closed its base at London's Gatwick airport, as aviation suffers its worst downturn ever because of the coronavirus pandemic.
—Michelle Toh contributed to this report