SELL OUT! Seaborne Airlines Says Toxic Chapter 11 Bankruptcy Filing Won’t Affect Its Sale To Silver Airways
SAN JUAN – Sea Star Holdings Inc., parent company for Seaborne Puerto Rico LLC, Seaborne Virgin Islands, Inc. and affiliates (“Seaborne” or “the Company”), announced the company has commenced a voluntary reorganization proceeding under Title 11 of the U.S. Code in order to implement new financing and a sale to affiliates of Silver Airways, LLC.
Seaborne said it will continue its business without interruption, including all existing flight operations in Puerto Rico, the U.S. Virgin Islands, and throughout the Caribbean. Tickets held by customers will continue to be valid and Seaborne will be taking bookings for future travel, as normal, it said.
Seaborne also claimed that it has secured a new $4.2 million credit facility and concurrently entered into a Purchase Agreement (subject to court approval and potential overbids) to sell substantially all of its business and assets to Silver Airways. This will facilitate a combination between Seaborne and Silver Airways, creating the industry’s leading regional carrier in the Caribbean, Florida, and the Bahamas.
“While the Company’s business has enjoyed a remarkable recovery since the 2017 hurricanes, the financial stress caused during the recovery period coupled with legacy liabilities have made it necessary to seek reorganization protection,” said Ben Munson, Acting CEO of Seaborne Airlines. “Our day to day operations will continue as normal, and this process will be in the best interests of all of our customers and stakeholders. Passenger service and safety will continue to be top priorities for the company.”
Seaborne said it will operate normal flight schedules and conduct business as usual, honoring all ticketed reservations and rules of the company’s Contract of Carriage. The company will also maintain our codeshare partnerships that facilitate easy connections to partner airlines and our Seamiles program will remain active.
On Dec. 18, 2013 Seaborne announced that it was moving its corporate headquarters from St. Croix, Virgin Islands to San Juan, Puerto Rico.
For more information please visit: https://www.seaborneairlines.com/restructure/
Seaborne Airlines, the largest Caribbean based regional airline for 25 years, operates iconic seaplanes and an airport based fleet that service the beautiful islands throughout the Caribbean, carrying approximately 3 million customers safely. With over 1,500 monthly departures to 12 airports, Seaborne serves San Juan’s Luis Muñoz Marin International Airport, St. Thomas airport, and Seaplane base, St. Croix airport and Seaplane Base, Anguilla, Antigua, Dominica, Saint Maarten, St. Kitts, Tortola, and Nevis. All Flights operate with two pilots and two engines.
About Silver Airways
As the airline of choice for Florida and the Bahamas, Fort Lauderdale based Silver Airways operates more routes within Florida, and between Florida and the Bahamas than any other airline. The airline averages 125 daily flights to 18 destinations in Florida (including hubs in Fort Lauderdale, Orlando, and Tampa) and the Bahamas. Sliver is a codeshare partner with JetBlue, United Airlines, and Avianca and has interline agreements with American Airlines, Delta Air Lines, Air Canada, Alaska Airlines, Bahamasair, Hahn Air, Azul Brazilian Airlines, and All Nippon Airways. Silver currently operates a fleet of 21 highly reliable and fuel-efficient 34-seat Saab 340B Plus turboprop aircraft under its FAA Part 121 air carrier certificate. More information is available at silverairways.com.