Tag Archives: chapter 11 bankruptcy protection

Sky King secures DIP financial backing for its reorganization

Sky King, Inc. (Sky King Airlines) (Lakeland) has announced the successful negotiation of Debtor in Possession financing and intends to seek immediate court approval. The private investment consortium providing the financing is represented by Dr. Daniel Carson, an experienced aviation executive and entrepreneur. Sky King and the investment group have not announced plans for the company but are certain the airline will put forth a formal plan of reorganization in the near future. Sky King’s President, Frank Visconti stated: “This is simply the next step in the long process of restructuring and preparing the Company for the future. We are proud of the work we have done and are excited to welcome Dr. Carson and his associates into the process as they bring not only capital but equally important expansion opportunities in new markets.”

Sky King began operating in 1995 under FAR Part 125 and in 2002, the Company was granted Part 121 operating authority by the Federal Aviation Administration. Operating a fleet of Boeing 737 aircraft, the Company serves the Tour Operator, Private Charter and Public Charter markets, serving numerous Casino operators, sports franchises and scheduled flight service providers. One specific market served by Sky King involves over 150 flights per month between the US and Cuba on behalf of several US Treasury Department licensed service providers. Sky King filed for Chapter 11 Bankruptcy protection on August 31st, 2012 after two of Sky King’s largest clients in 2011 and 2012 ceased operations with substantial, unpaid debt to Sky King; these were among several factors ultimately contributing to the Company’s decision to seek Chapter 11 reorganization protection.

Copyright Photo: Brian Mcdonough. Boeing 737-4Q8 N916SK (msn 24706) with rare titles approaches Miami International Airport after finishing a Cuban charter.

Sky King logo

Sky King: AG Slide Show

Blue Panorama Airlines enters into bankruptcy protection and reorganization

Blue Panorama Airlines (Rome-Fiumicino) has entered into the equivalent of Chapter 11 (bankruptcy protection and reorganization). On October 23, the company issued the following statement (translated from Italian):

BLUE PANORAMA AIRLINES TAKES ADVANTAGE OF NEW REGULATORY TOOLS CONTAINED IN THE “ORDER OF DEVELOPMENT” TO INCREASE ITS COMPETITIVENESS ‘

Blue Panorama Airlines S.p.A. announces that it has applied for admission to the composition procedure in continuity under the Development Decree, according to the U.S. model of highly effective better known as “Chapter 11”.
Blue Panorama has decided to use this tool accessible to even a few weeks to Italian companies to consolidate their financial and capital structure in order to deal in the best position possible to the challenges posed by the current economic environment in the field of aviation and leisure travel. This is to continue to play in this respect the leading role that for over 14 years, is recognized by its customers. The start of the procedure has been notified to ENAC, which provided for the issuance of temporary license pursuant to article 9 of the Regulation 1008/2008.

The objectives that arises Blue Panorama Airlines through this new route are to:

– Continue to offer passengers excellent service, safe and reliable;
– Improve the industrial and commercial efficiency;
– To ensure the normal operation of domestic and international flights;
– Continue to offer competitive air links for the benefit of users;
– Make Blue Panorama Airlines and Blu-express a new benchmark in the sector.

During the reorganization process, Blue Panorama Airlines will carry out normal operations, while maintaining the commitment of its management team and operational. In addition to the consolidation of traditional connections will also be triggered new international services of great interest both outgoing and incoming flows.

Blue Panorama Airlines and Blu-express continue to operate their respective flight schedules, honoring tickets and reservations as usual, and to continue the industrial partnerships with carriers, tour operators and travel agent partners.
The President and founder of the company, Franco Pecci, maintains and increases its commitment to the holding in the firm belief that customers, which have always been the company’s priority will continue to use the Blue Panorama flights and Blu-express for quality service competitive and constantly delivered by the carrier in all years.

Copyright Photo: Lucio Alfieri. The company operates under both the Blue Panorama Airlines and blu-express names and brands. Boeing 737-4K5 EI-CUN (msn 27074) carries both names at Bologna.

Blue Express Airlines: 

Frameable Color Prints and Posters: 

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.

Southern Air: