The Debtors' combined plan was confirmed on June 18, 2026, but emergence now turns on whether plan sponsor OwnersJet LLC funds a restructuring transaction it missed on June 30, 2026. At a July 2 hearing, Judge Craig T. Goldblatt approved a stipulation and corresponding plan modifications that raised the sponsor's contribution from $3.1 million to $3.3 million, released $200,000 of non-refundable escrow immediately, and gave the Debtors procedural flexibility under Section 16.2 of the plan to pivot to a backup bidder if necessary July 2 Hearing RecordDkt. 440. OwnersJet attributed the missed funding to anti-money-laundering and fraud compliance holds on proceeds held in a South African bank and represented that funds would be available by July 6, 2026; in exchange, the Debtors agreed to forbear from filing further plan modifications or confirmation orders until July 8, 2026 Notice of Hearing on Plan Modification and OwnersJet StipulationDkt. 431.
The seven Debtor entities — led by FLOAT Alaska LLC and including New Pacific Airlines, FlyCoin, Corvus Alaska Holdings, FLOAT Alaska Holdings, FLOAT Alaska IP, and FLOAT Shuttle — filed voluntary Chapter 11 petitions in the District of Delaware on January 26, 2026, roughly two months after ceasing all operations and laying off 115 employees on November 26, 2025 Chapter 11 Voluntary PetitionDkt. 1. The first-day declaration of CEO Thomas Hsieh traces the collapse to compounding pressures: Russia's 2022 airspace closure stranded New Pacific Airlines' transpacific model without ETOPS certification, the concurrent crypto-market collapse destabilized the FlyCoin loyalty platform, sustained pilot attrition and Aleutian Airways' entry into Dutch Harbor eroded Ravn Alaska's regional position, and cash burn of approximately $5 million per month culminated in a missed Private Jet Services payment that broke payroll . The Debtors entered Chapter 11 with approximately $184,200 of cash and $55.7 million of funded debt, anchored by a $22.4 million aircraft term loan originally extended by NFS Capital and later acquired by insider affiliate Jones Holding LLC, alongside $11.3 million in Jones secured notes and $22 million in Josh Jones and family-trust convertible paper.
The case was structured from the petition date as a Section 363 sale with a fallback plan, financed through a contested insider DIP facility. The Official Committee of Unsecured Creditors objected to both the DIP financing and the bid procedures, arguing the package rolled up $3.2 million of prepetition Jones debt, encumbered otherwise unencumbered assets including the Part 121 certificate, intellectual property, the np.com domain, tax refunds, and avoidance actions, and starved Committee professionals while budgeting over $1 million for Debtor counsel Committee Omnibus Objection to DIP and Bid ProceduresDkt. 71. The sale process nonetheless produced a going-concern plan sponsor in OwnersJet, and the Debtors pivoted to a Combined Disclosure Statement and Plan that the Court confirmed on June 18, 2026.
The post-confirmation estate is winding down with minimal operating activity. New Pacific Airlines' May 2026 monthly operating report reflects zero employees, $30,875 of ending cash, a $1.8 million monthly net loss, and complete disposition of aircraft spare parts and flight equipment through the Section 363 sales Monthly Operating Report for May 2026Dkt. 438. The next scheduled matter is a July 16, 2026 omnibus hearing on claims administration, while the Debtors work under the July 8 forbearance window either to close with OwnersJet or invoke the backup-bid procedures.
