Low-cost airline gets more time to file bankruptcy plan after canceling flights

Silver Airways suddenly filed for bankruptcy protection and canceled flights out of several cities.

Apr 25, 2025 - 17:50

Low-cost airline gets more time to file bankruptcy plan after canceling flights

On the second-to-last day of 2024, budget airline Silver Airways declared bankruptcy, shocking travelers who used it to fly to certain popular holiday destinations.

The Fort Lauderdale-based carrier filed for Chapter 11 protection at the U.S. Bankruptcy Court for the Southern District of Florida on Dec. 30 and three months later, pulled out of Orlando International Airport over nonpayment of nearly $104,000 in airport fees.

In January, some Silver customers in Anguilla were also temporarily left stranded after the latter revoked the carrier's right to fly into the British Caribbean territory for similar reasons.

In separate statements, Silver blamed everyone from airport authorities to its aircraft leasing company for the cancelations.

Don't miss the move: Subscribe to TheStreet's free daily newsletter

Silver gets extension to file restructuring plan, secures new funds

"To date, Silver's restructuring has been going exceedingly well, but unfortunately, Dutch aircraft leasing company TrueNoord abruptly reversed its previously stated position and immediately required Silver to pay millions of dollars to retain the airplanes we have been flying for years," an airline representative told TheStreet in March 2025.

On April 24, Southern District of Florida bankruptcy judge Peter Russin approved Silver's request to extend the period in which to submit its bankruptcy plan from the end of April to June 28.

Silver will now also have until Aug. 27 to secure creditor backing. The judge approved the request after Silver showed that Greenwich, Connecticut-based lender KIA II gave it a $5.5 million loan to make debt payments and continue day-to-day operations. While it was forced to cancel flights and pull out of certain markets, the carrier has not stopped running flights since filing for Chapter 11 protection.

Two weeks earlier, a bankruptcy trustee the government assigned to oversee the case had "substantial and continuous loss" and "fanciful projections" about getting out of bankruptcy in asking that the court go straight to liquidation.

*Silver Airways was founded in 2011 with the assets of the defunct Gulfstream International.*
Image source: Shutterstock

With bankruptcy looming, Silver service out of multiple cities continues

On May 7, Russin will also hear requests from four creditors who are requesting immediate payment on debts owed; Florida's City of Tallahassee and Monroe County are among them. Silver has over $500 million in total debt, while Tallahassee International Airport and Tampa International Airport each claim a respective $84,000 and $385,000.

More on retail and bankruptcy:

After losing the right to fly into and out of Orlando, Silver continues running flights in and out of Key West, Tampa, Tallahassee, Fort Lauderdale, and Pensacola. Silver travelers have been using the airline to fly into Caribbean destinations like St. Kitts, St. Maarten, and Dominica as well as multiple islands in the Bahamas.

Although news of the bankruptcy as well as suddenly canceled flights in Orlando and Anguilla have caused a serious reputation hit to Silver among its customers, it serves several unique markets in the Caribbean and has been a large low-cost name that many Floridian travelers use.

As things currently stand, the airline is looking for an investor willing to take on its debt load and give Silver another chance to get back to profitability with a restructuring. The airline had previously said that it hopes to complete the restructuring process by the first quarter of 2025.