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Western Global considers bankruptcy as cash dwindles
来源：shippingazette 编辑：编辑部 发布：2023/06/29 15:07:18
FLORIDA-BASED cargo carrier Western Global Airlines is weighing options including filing for bankruptcy as it faces dwindling liquidity, according to people with knowledge of the matter.
The cargo airline began confidential talks with some of its creditors related to its financing needs last month, Bloomberg previously reported. A final decision has not been made and the situation could change.
A representative of Western Global, which is based in Estero, Florida, declined to comment, reports Singapore's The Strait Times.
One of the smaller air cargo providers in the United States, Western Global has been burning cash amid cooling demand. It has been dealing with labour shortages that blocked the company from using certain routes to Asia, which led to soaring fuel costs, according to a March note from Moody's Investors Service.
The company had US$400 million in aircraft assets and a fleet of 21 aircraft as of September, according to Moody's. The airline's assets, however, are encumbered, limiting its ability to raise new financing.
Amid talks with creditors, Truist Financial has been seeking to sell the company's first-lien term loan and revolving credit line with a face value of about $115 million, people familiar with the efforts said. Truist, the agent on the loans, accepted a bid of about 40 US cents on the dollar for the debt, the people added. The airline had defaulted on the loan earlier this year, they said.
The cargo airline began confidential talks with some of its creditors related to its financing needs last month, Bloomberg previously reported. A final decision has not been made and the situation could change.
A representative of Western Global, which is based in Estero, Florida, declined to comment, reports Singapore's The Strait Times.
One of the smaller air cargo providers in the United States, Western Global has been burning cash amid cooling demand. It has been dealing with labour shortages that blocked the company from using certain routes to Asia, which led to soaring fuel costs, according to a March note from Moody's Investors Service.
The company had US$400 million in aircraft assets and a fleet of 21 aircraft as of September, according to Moody's. The airline's assets, however, are encumbered, limiting its ability to raise new financing.
Amid talks with creditors, Truist Financial has been seeking to sell the company's first-lien term loan and revolving credit line with a face value of about $115 million, people familiar with the efforts said. Truist, the agent on the loans, accepted a bid of about 40 US cents on the dollar for the debt, the people added. The airline had defaulted on the loan earlier this year, they said.