Silver Airways is now in Chapter 7 liquidation after ceasing flight operations on June 11, 2025 and converting on July 28, bringing to an end a Chapter 11 effort to preserve the regional carrier through postpetition financing and an asset sale. The sale process did not produce a third-party bid capable of sustaining the airline as a going concern; the eventual secured-creditor transaction resolved the debtor-in-possession financing, and the case has shifted from operating restructuring to liquidation and claims administration. No upcoming hearing or milestone is identified in the current case record.
Silver Airways and its Seaborne Virgin Islands affiliate entered Chapter 11 on December 30, 2024, when Silver filed its voluntary petitionDkt. 1. The regional airline then operated ATR aircraft across Florida, the Bahamas and the Caribbean, while Seaborne provided U.S. Virgin Islands seaplane service; roughly 35% of revenue came from interline and code-sharing relationships with larger carriers. The filing followed a troubled transition to the ATR-600 fleet: certification delays, inadequate parts and training support, diversion of contracted aircraft, global parts shortages, equipment defects and an incompatible aircraft configuration for a planned cargo program constrained fleet availability and liquidity. Against that operating pressure, the debtors reported approximately $398.6 million of prepetition funded debt—about $186.8 million under a first-lien Brigade Capital facility and $211.8 million under subordinated, second-lien facilities agented by Argent Funding and Volant SVI—as described in the first-day declarationDkt. 35.
The initial Chapter 11 strategy was an operating bridge: Silver sought cash-collateral authority for a short opening budget period while negotiating debtor-in-possession financing, alongside relief to pay employees, preserve its cash-management system, maintain airline clearinghouse and interline arrangements, and satisfy taxes and regulatory fees needed to keep aircraft flying under the first-day relief narrativeDkt. 35. That liquidity path later became a $5.5 million secured, superpriority DIP facility tied to sale milestones. The DIP obligations were ultimately credit bid and repaid through the June 19, 2025 asset-sale order, but the transaction did not avert the operational shutdown or conversion. The remaining trajectory is therefore Chapter 7 liquidation rather than a plan-based reorganization or a restart of scheduled service.
