Gemini Air Cargo has filed for Chapter 11 bankruptcy protection, but plans to continue operating through the restructuring process.
In a letter to employees obtained by Flight's premium news service Air Transport Intelligence, Gemini management says the decision to file for bankruptcy was driven by "record-shattering fuel prices" coupled with revenue shortfalls encountered over the past 12 months.
To fund current operations through the process of reorganization, Gemini has secured an additional loan commitment of up to $14 million from the company’s existing senior lender.
However, the Washington Dulles-based company is also seeking investors. As part of its filing, Gemini submitted bidding procedures and expects to have a transaction complete during the summer, it says in the letter.
Gemini promotes itself as the largest aircraft, crew, maintenance and insurance (ACMI) operator of McDonnell Douglas DC-10-30F and MD-11F aircraft in the world.
This is the second time in two years that Gemini has filed for Chapter 11. The company emerged from a short-lived restructuring process in August 2006, after its largest pre-petition lender Bayside Capital made a new financial commitment to the firm.
Gemini could not be immediately reached for comment.