US cargo carrier Western Global Airlines has emerged from Chapter 11 bankruptcy protection with a “strong financial foundation” after implementing its restructuring plan.
“The company has successfully completed its comprehensive financial restructuring,” Western Global said on 4 December. It adds that the company’s reorganisation plan was approved by the US Bankruptcy Court for the District of Delaware.
“My top priority has always been to preserve the long-term viability of our company and protect our people,” says founder and chief executive Jim Neff. “We will continue our mission to connect people worldwide to the urgent necessities that are important to them, with steadfast and renewed focus and financial resources.”
Following an 100-day court process, the carrier says it has reduced its debt by more than $460 million and “infused significant new capital into the company”. It now has less than $100 million of debt.
The carrier continued operating during that period and offered a cash reward retention programme for “nearly its entire workforce”, it says.
Feeling squeezed by high fuel prices, pilot attrition, delays in selling off engines and an unexpected customer shift away from dedicated freighters, the Florida-based widebody aircraft operator voluntarily entered Chapter 11 protection in August.
Western Global maintains it is now better positioned to build on its decade of experience operating large widebody freighters, emerging with its fleet of four Boeing 747-400s and 15 MD-11s intact.
It also has two nonconforming MD-11Fs, 11 part-out aircraft and “a large inventory of parts, materials and tooling”, the company says. “With the exception of one leased airplane, all aircraft, engines and spare parts are 100% owned” by the reorganised company.
Western Global also has a pair of 777Fs in its order book.