Global Aviation Holdings announced (12-Nov-2013) the company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the US bankruptcy code in court, including its two operating carriers World Airways and North American Airlines. The company has taken this action to strengthen its balance sheet and gain financial flexibility as it continues to realign its operations, intending to continue to operate during the reorganisation process. Global Aviation expects to reduce its workforce by approximately 16% over the next 90 days. Global Aviation CEO John Graber stated, "We intend to use the reorganisation process to help implement our plan to lower costs, stabilise our businesses, grow revenue and diversify our product lines. We have taken a number of steps to improve our operations over the past few months and we were making great progress; however, the continued worldwide downturn in commercial freight markets coupled with the military’s decision to immediately curtail its cargo expansion flying has made it necessary for us to undertake this court-supervised reorganisation. We believe that this reorganisation will enable us to reduce our debt and implement operational changes, while maintaining our commitment to safety, compliance and reliable customer service." [more - original PR]
Global Aviation Holdings files for Chapter 11 reorganisation
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