Western Global Airlines reaches bankruptcy financing deal
Western Global Airlines has reached a deal with creditors that would allow the cargo carrier to keep operating while it reworks its debt load in a potential bankruptcy, according to people familiar with the matter.
The distressed carrier has lined up $77.3 million of bankruptcy financing at a rate of 9% over the Secured Overnight Financing Rate to fund the company’s operations while in Chapter 11 protection, according to the people, who asked not to be identified because the matter is private. The cargo airline is expected to seek court protection from creditors in the coming days, the people said.
→ Alaska Airlines partners with NASA and Boeing to develop sustainable airliner
The deal includes a roll-up of debt held by founder and Chief Executive Officer Jim Neff while other creditors, including bondholders, will provide about 50% of the financing, said the people. It also puts Neff in position to retain control of the company following its emergence from bankruptcy, they said.
The airline has been considering options including a bankruptcy filing to address its debt load while facing dwindling liquidity for months.
Neff last month bought the airline’s secured debt — trading at a steep discount — as he sought to keep the company alive through a restructuring, Bloomberg reported. In the process, he irked at least some investors because his status as a loan holder has put him ahead of unsecured bondholders in the repayment line.
Photo: Hawkeye UK/Wikimedia
Related Topics
FAA Alerts Airlines to Potential Military Actions and GPS Interference in Several Latin American Airspaces
Avianca Reactivates Santiago-Cartagena Route: A Seasonal Bet Boosting Connectivity Between Southern Cone and the Caribbean
LATAM Closes 2025 with 87.4 Million Passengers: Brazil and International Network Drive Growth
LATAM Strengthens Its Bet on Argentine Winter with a New RouteSão Paulo–Ushuaia and More Capacity to Bariloche
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.