Silver Airways files for Chapter 11 bankruptcy protection
On 30 December 2024, Silver Airways announced that it had voluntarily filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of Florida, together with…
December 31, 2024
On 30 December 2024, Silver Airways announced that it had voluntarily filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of Florida, together with its subsidiary Seaborne Virgin Islands. The Chapter 11 process should allow the company to restructure and attract new capital without the threat of creditors filing for its bankruptcy.
The airline will continue with normal operations while undertaking a restructuring process that will take the first quarter of 2025. The airline has an estimated US $100-500 million in liabilities, including US $2.1 million to the United States Internal Revenue Service, US $1.1 million to the Broward County Aviation Department (operator of Fort Lauderdale International) and US $1 million to the Greater Orlando Aviation Authority.
The company also owes some US $8.6 million to four lessors; US $4.5 million to Azorra Eagle 1 DAC, who own three of the airline’s ATR42-600s and three ATR72-600s, US $1.5 million to TrueNoord, who own two ATR42-600s and one ATR72-600, US $1.5 million to Nordic Aviation Capital, who own three ATR42-600s and US $1.1 million to Jetstream Aviation Capital, who own two ATR72-600s leased to Silver Airways.
Silver Airways said in a statement that: “This decision will allow us to secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline, ultimately benefiting our valued customers.”
Silver Airways was founded in 2011 out of the bankrupt Gulfstream International Airlines. The airline is headquartered at Fort Lauderdale-Hollywood International (FL) and began operations in December 2011. It currently operates an all-leased fleet of eight ATR42-600s and six ATR72-600s, operating scheduled services within Florida and from Florida to the Bahamas, and between San Juan Luis Muñoz Marin and a number of destinations in the Caribbean.
Seaborne Virgin Island was acquired by Silver Airways after going through its own Chapter 11 restructuring in 2018. It operates between St. Croix and St. Thomas in the US Virgin Islands using two float-equipped DHC-6-300s.
