ST. CROIX — Seaborne Airlines and its parent company Silver Airways have voluntarily filed separate petitions for Chapter 11 bankruptcy in a strategic move that will not affect the operations of either airline, according to a Silver Airways official.
Although Silver owns Seaborne, the airlines filed individual petitions for bankruptcy on Monday because each airline holds separate operating certificates with distinct employee and vendor groups, Katie Loughlin, Silver director of Alliances, Marketing and Communications, wrote in an email response to WTJX.
“Both airlines will continue to operate as usual, with no impact on employees or customers,” Loughlin wrote. “Travelers can continue to book and fly without interruption.”
The decision to file for bankruptcy will allow Silver/Seaborne to seek additional financing and other strategic alternatives for the business to strengthen the company for its customers, employees, and stakeholders, according to Loughlin.
Silver and Seaborne both announced today on social media that the decision would allow the combined airline “to secure additional resources and restructure for long-term success.” Both airlines indicated that the move would ensure they continue to deliver safe and reliable service, stressing that all tickets remain valid, flights will operate as scheduled, and bookings are unaffected and can continue as normal.
In addition to the social media posts, Silver Airways announced the decision to file for bankruptcy in an open letter to all customers published Monday on its website. The letter indicates the filing took place in U.S. Bankruptcy Court for the Southern District of Florida, where Silver Airways was founded and still operates. The process is expected to be completed by the first quarter of 2025.
“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 you — our valued customers,” the letter reads.
Silver Airways successfully closed the acquisition of Seaborne’s business and assets in 2018, creating a leading independent airline, both airlines announced on April 22, 2018. The combined airline operates Silver’s route network in The Bahamas, Florida, and beyond under the Silver Airways banner, and Seaborne’s route network throughout the Virgin Islands, Puerto Rico, and the Caribbean under the Seaborne name.
Silver and Seaborne indicated in their petitions they are affiliates that are both filing for bankruptcy, and that no funds would be available to unsecured creditors after any administrative expenses are paid. Seaborne indicated between 100 to 199 estimated creditors, and between $1,000,001 to $10 million estimated assets as well as liabilities. Silver indicated between 1,000 to 5,000 estimated creditors, and between $100,000,001 to $500 million estimated assets as well as liabilities. They are both being represented in the Chapter 11 case by the Atlanta-based law firm Smith, Gambrell & Russell LLP.
