I'd say that Virgin Atlantic like the majority of businesses around the world are on their knees. While it may not have been the most profitable of airlines historically, i'd reckon that Covid-19 apart, they'd still trade comfortably as a going concern for many, many years. Compare that to the like of Thomas Cook, Monarch or Flybe who all died of "natural causes".
Governments around the world are injecting cash into their home based in order to keep them trading as it's not always possible (even if they wanted to) for existing shareholders to stump up. Should Virgin Atlantic go then the only winners I can see are the shareholders of IAG and, should they survive, Norwegian (which would be somewhat ironic).
I also don't see how Virgin can carry a £600 million loan, so hopefully some sort of equity/loan combination can be agreed.