World Airways Cargo Boeing 747-4H6 (F) N740WA (msn 25700) MIA (Wade DeNero), originally uploaded by Airliners Gallery.Global Aviation Holdings Inc., the parent company of World Airways, Inc. (Atlanta), North American Airlines, Inc. (New York) and other subsidiaries, yesterday (February 5, during Super Bowl day) filed for Chapter 11 bankruptcy reorganization.
The holding company announced “that to achieve a cost and debt structure that is industry competitive and continue to provide outstanding service to its customers, it has commenced a financial restructuring through the voluntary filing of petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States District Court for the Eastern District of New York. During the restructuring, the Company and its subsidiaries will continue to operate as normal, without interruption.
The Company’s Board of Directors determined that a Chapter 11 reorganization provides the most effective and efficient means to restructure with minimal impact on the business, and is in the best interest of the Company, its stakeholders and customers.
Global has filed motions with the Court seeking interim relief that will ensure the Company’s ability to continue all of its normal operations, including the ability to provide employee wages, healthcare coverage, vacation, and other benefits without interruption; honor customer programs; and pay vendors and suppliers for post-petition goods and services. Such motions are standard and the Company anticipates receiving approval from the Court within the next several days. Vendor and supplier invoices incurred prior to the commencement of the Company’s Chapter 11 case that have not been paid will be resolved through the Company’s Plan of Reorganization, which requires Court approval and has yet to be submitted.
Global, through its subsidiaries World Airways and North American Airlines, is the largest provider of military transport services through the Air Mobility Command. World Airways was founded in 1948, and received its first government contract to provide supplemental airlift to the U.S. military in 1951 during the Korean conflict. North American, founded in 1989, also flies for the U.S. military, as well as international and domestic charter services to a broad customer base that includes major U.S. corporations, domestic and international airlines, presidential campaigns, the White House press corps, entertainers and production companies.
Global’s lead counsel in connection with the restructuring is Kirkland & Ellis LLP and its financial advisor is Rothschild.”
Copyright Photo: Wade DeNero.
North American Slide Show: CLICK HERE
World Airways Slide Show: CLICK HERE
