Southern Air files for Chapter 11 bankruptcy protection and reorganization
Southern Air, Inc. (2nd) and the holding company, Southern Air Holdings, Inc., today (September 28) filed for Chapter 11 bankruptcy protection and reorganization.
The company issued the following statement:
To position the company for future growth and success, Southern Air has been taking steps in response to the economic challenges and extreme industry changes that have impacted the international freight market, including major cutbacks in spending by the U.S. Department of Defense. At the same time, we have been making good progress in transitioning to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. The next component of our transformation is the restructuring of our corporate debt and other costs associated with our acquisition in 2007. With an improved balance sheet, Southern Air will have a greater capacity to move forward as a global air cargo industry leader on a financially stronger and more competitive foundation for the long term.
In order to implement this financial restructuring, Southern Air Holdings, Inc., including Southern Air Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on September 28, 2012 with the support of a majority of our key financial stakeholders. We will work with them to finalize, obtain court approval for, and implement a plan of reorganization as quickly as possible.
We have also filed a proposed plan of reorganization that has the support of a majority of our key financial stakeholders and provides for the continuation of our business in the normal course. We are working to complete the debt restructuring as quickly and efficiently as possible.
Southern Air remains open for business as usual, and fully expects to continue normal business operations, fulfilling all customer requirements as scheduled and providing uninterrupted high quality air cargo services.
Copyright Photo: Tony Storck. Boeing 747-2F6B (F) N765SA (msn 21833) lands at Baltimore/Washington.