Pink Planes in Peril

Judge balks at Silver Airways bankruptcy plans, but pink planes get a lifeline through June.

At the bitter end of 2024, Florida-based regional carrier Silver Airways filed for Chapter 11 bankruptcy protection. Executives at the airline insisted that this would be a quick restructuring, and that the company would emerge stronger than ever before in the first quarter of 2025.

They were wrong. And now, unfortunately, the Federal Judge overseeing the bankruptcies sees things through a different not-so-rosy-pink set of lenses.

During the Pandemic, Silver benefitted to the tune of tens of millions of dollars from the Federal government’s Payroll Protection Program (PPP.)

Now the PPP acronym stands for pretty Pink Planes in Peril.

In this post:

• Silver Airways is approaching Chapter 7 liquidation

• Silver Airways acquisition offer buys it time

• There is not a likely scenario where this doesn’t end up in liquidation.

• Bottom line

Silver Airways is Approaching Chapter 7 Liquidation

Back In mid-April, the United States trustee overseeing Silver Airways’ Chapter 11 bankruptcy process requested dismissal of the case, stating that “because there is a substantial and continuing loss to the estate shown by the Debtors’ net negative profits and negative cash flow, and an absence of a reasonable likelihood of rehabilitation evidenced by the Debtors’ inability to secure debtor in possession financing and fanciful projections that fail to take reality into consideration.”