Armed with $5.5M in fresh cash, Silver Airways gets extension to file bankruptcy exit plan
Regional carrier Silver Airways, which has been operating all year under Chapter 11 bankruptcy protection, has acquired more cash and additional time to hammer out a reorganization plan and potentially find a buyer who can take over a company that has served Florida, the Bahamas and the Caribbean for more than a decade..
The Fort Lauderdale-based airline, whose Florida route network has diminished to five cities, filed its bankruptcy petition last Dec. 30 along with its subsidiary Seaborne Virgin Islands. Upon filing, Silver management penned an open letter to customers, saying “we anticipate completing this process by the first quarter of 2025.”
But the first quarter has come and gone, with no acquisition deals on the horizon. And absent an interested buyer, the airline has come under pressure from creditors who want to be paid for services rendered during the Chapter 11 bankruptcy proceedings. The case is assigned to U.S. Bankruptcy Judge Peter Russin in Fort Lauderdale.
Since the filing, Silver’s fleet has been cut in half and its staff has declined from a little more than 600 people to 448, according to court records. And the U.S. Trustee’s Office, whose mission it is to protect creditor rights, has asked the judge to dismiss the case on the grounds that there are few signs that a reorganization can succeed.