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Gulfstream International commences financial restructuring

8-Nov-2010 12:31 PM

Gulfstream International Group commenced (05-Nov-2010) its financial restructuring and announced it has arranged up to USD5 million in debtor-in-possession (DIP) financing from Victory Park Capital Advisors, subject to court approval. Gulfstream asked the bankruptcy court to allow it to pay all of its approximately 600 employees any pre-petition wages and continue all wage and benefit programs. The company does not anticipate any layoffs directly related to the filing. [more]

Gulfstream also announced (05-Nov-2010) that on 03-Nov-2010, it received notice from the NYSE Amex, indicating that the Exchange intends to strike the company's common stock from listing on the Exchange by filing a delisting application with the Securities and Exchange Commission. The Exchange will initiate the delisting process with respect to the company's common stock and will suspend trading in accordance with Part 12 of the Company Guide. The company is considering whether to take the necessary steps to have its common stock traded on the Over-the-Counter Bulletin Board. [more]

Gulfstream: "We are operating our full schedule of flights and honoring all tickets and reservations. Our passengers and employees are not impacted by this legal filing. This represents the first step in securing the right long-term financing, which would allow us to acquire our fleet of aircraft, improve our cost structure and position us for future growth. This restructuring with the new capital investment by Victory Park means that Gulfstream will be much stronger than today. While we have seen strong year-over-year improvements, the impact of our borrowing in the last several years to cope with consistently high fuel costs and the economic impact of declining traffic made it too difficult for the company to continue to meet its debt repayment needs. We are committed to maintaining business as usual, including the highest standards of safety and operational reliability. Gulfstream's employees are the best in the business and give their all every day. Our intent is to use the restructuring process to strengthen our company to ensure a great future for our employees." David Hackett, President and CEO of Gulfstream. Source: Company statement.