US air charter services provider Global Aviation Holdings Inc said that the company and its subsidiaries, including its operating airlines World Airways and North American Airlines have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The company said it has taken this action to strengthen its balance sheet and gain financial flexibility as it continues to realign its operations. The company intends to continue to operate during the reorganisation process.
As part of the reorganisation, the company is taking steps to align its cost structure with the realities of market demand.
Global Aviation said it expects to reduce its workforce accordingly by approximately 16% of the employees over the next 90 days.
In conjunction with its reorganisation, the company said it has obtained debtor-in-possession financing from its first lien lenders. On Court approval, the new financing and cash generated from the company´s ongoing operations will be used to support the business during the reorganization process.
Global Aviation Holdings Inc. is the parent company of North American Airlines and World Airways. North American Airlines, founded in 1989, operates passenger charter flights using Boeing (NYSE: BA) 767-300ER aircraft. World Airways, founded in 1948, operates cargo and passenger charter flights using B747-400 and MD-11 aircraft.
Find out more at www.glah.com.