Current posture

What matters now

Silver Airways is now in Chapter 7 liquidation, after its Chapter 11 operating and sale strategy did not produce a going-concern outcome. The regional carrier and its Seaborne Virgin Islands affiliate filed voluntary Chapter 11 petitions on December 30, 2024, after a troubled transition to ATR-600 aircraft, parts and support constraints, and related operational pressures compounded an unsustainable capital structure, as described in the first-day declaration Dkt. 35. At filing, the debtors had approximately $398.6 million in funded debt, comprising first-lien convertible-note obligations and second-lien secured credit agreements. The initial objective was to preserve flight operations and enterprise value while arranging postpetition liquidity. The debtors sought interim use of cash collateral to fund payroll, fuel, maintenance, insurance, and airport leases under a two-week budget while they pursued DIP financing in the cash collateral motion Dkt. 24. That relief protected the first- and second-priority secured lender groups while keeping the business operating during the early Chapter 11 period. By April 2025, the case had moved to a sale-oriented path: the debtors sought up to $5.5 million of secured, superpriority DIP financing…

Updated Aug 10, 2026