Holdings, largest military transport Files Bankruptcy Protection
By Shane Nolan
February 6, 2012 - Global Aviation Holdings Inc., the
parent company of World Airways, Inc., North American
Airlines, Inc. and other subsidiaries, Sunday announced
that to achieve a cost and debt structure that is
industry competitive and continue to provide outstanding
service to its customers, it has commenced a financial
restructuring through the voluntary filing of petitions
to reorganize under Chapter 11 of the U.S. Bankruptcy
Code in the United States District Court for the Eastern
District of New York (the “Court”).
During the restructuring, the Company and its
subsidiaries will continue to operate as normal, without
interruption. The Company's Board of Directors
determined that a Chapter 11 reorganization provides the
most effective and efficient means to restructure with
minimal impact on the business, and is in the best
interest of the Company, its stakeholders and customers.
the Company has worked closely with its lessors, bondholders and
other creditors and constituents over the past year, which led
to the reduction of certain obligations, the Company needs to
complete its comprehensive restructuring due to having too large
a fleet, labor costs that exceed industry standards given the
current global economic environment, and the necessity to align
the capital structure with the size of the Company,” said Robert
Binns, Chairman and Chief Executive Officer of Global.
filed motions with the Court seeking interim relief that will
ensure the Company's ability to continue all of its normal
operations, including the ability to provide employee wages,
healthcare coverage, vacation, and other benefits without
interruption; honor customer programs; and pay vendors and
suppliers for post-petition goods and services.
motions are standard and the Company anticipates receiving
approval from the Court within the next several days. Vendor and
supplier invoices incurred prior to the commencement of the
Company's Chapter 11 case that have not been paid will be
resolved through the Company's Plan of Reorganization, which
requires Court approval and has yet to be submitted.
“Throughout this restructuring process, our customers, including
the United States Department of Defense, can continue to depend
on us to provide the same safe, high quality service they know
and have come to expect from us. We are committed to working as
quickly and efficiently as possible to appropriately restructure
Global so that it can emerge from Chapter 11 as a strong
company, well-positioned to compete effectively in the
marketplace,” continued Binns.
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