The sale of Silver Airways, which suspended operations in early June, has finally been approved by a federal bankruptcy judge.
Attorneys for the buyer, an affiliate of Wexford Capital of West Palm Beach and Greenwich, Connecticut, requested an emergency status hearing, which U.S. Bankruptcy Judge Peter Russin held Thursday and entered a signed order. A stalking horse bidder, Argentum Acquisitions LLC, made a $5.775 million offer after Silver failed to draw any suitable alternative bids, while another of its affiliates previously gave the struggling airline debtor-in-possession finance.
At first, Silver management was supposed to run the airline while the purchase obtained regulatory approvals from the Federal Aviation Administration. However, after learning that Silver had lost $1 million in revenue in late May as a result of a brief aircraft closure ordered by the FAA, the business withdrew from the operational side of the arrangement. The problem was that Silver’s fleet of turbo-prop aircraft did not have their battery kits updated.
After Argentum refused to provide funding for the airline’s ongoing operations, citing the $1 million deficit, the airline permanently halted operations on June 11.
The judge signed the agreement on Thursday, following over a week of discussions between the attorneys.
The majority of the airline’s assets will be acquired by Argentum free and clear under the updated agreement. However, it is also in charge of paying the salaries of eight employees who will assist with the wind-down, as well as over $9,400 in outstanding taxes to the Broward County Tax Collector. in line with the contract.
The airline used to employ over 800 people and served several cities in Florida as well as sites in the Bahamas and Caribbean.
After months of attempting, Silver’s attempts to restructure under Chapter 11 of the U.S. Bankruptcy Code failed, and the transaction essentially ends the story. On December 30, 2024, Silver filed for protection from creditors.
An Orlando-based aviation company named Nella Airlines has made a $200,000 stalking horse bid for Silver’s Caribbean affiliate, Seaborne Airlines, which also filed for Chapter 11. The bidding procedures will be discussed in a hearing scheduled for June 24.
The Association of Flight Attendants, or CWA, demanded earlier this month that the buyer reimburse unionized pilots and flight attendants who had their salary reduced just before the airline’s closure. According to AFA-CWA President Sara Nelson, the union was against the updated buyout deal. She stated that the purchase should be compelled to uphold the unions’ labor contracts and that the matter should be heard before Russin.
Wexford is trying to undermine the collective bargaining agreement, which is why our union is against the updated deal, she said. According to the documents, Wexford seems to be attempting to establish a different company to carry out the same flying that is currently covered by our contract.
According to her, the attendees only received 45% of their due payment on June 13, even though they were meant to receive full payment on that date. Wages, delayed moving costs, vacation time, sick leave, and medical fees are all due to Silver Flight Attendants. Additionally, the business must follow the WARN Act, which guarantees flight attendants 60 days of pay.
Several letters denouncing the loss of income and asking for the court’s help have been sent to the court by attendants and other staff members.
In a letter dated June 13, laid-off flight attendant Rogelio Benabe stated, “As of right now, we have not received our severance payments or our full compensation for the month of May.” Furthermore, since the employer has not formally notified us of our termination or layoff, we are unable to claim for unemployment benefits.
Benabe informed the judge that his dedication to putting employee wellbeing first during this process has been acknowledged and greatly valued.
A request for comment on Friday regarding the union’s plans following the court’s acceptance of the Silver sales order was not answered.
An emailed request for comment from Silver’s lead attorney, Brian Hall, was not answered.
Following the acceptance of the selling order on Thursday, Wexford has not released a statement. An email request for comment on any potential future operations the company may be considering was not answered on Friday.
