Thai Airways officially entered its bankruptcy reorganization on Monday. The carrier’s petition for rehabilitation, filed on 27 May 2020, was granted by the Central Bankruptcy Court on 14 September, allowing the company to proceed with its recovery plans.
bankruptcy
LATAM loses key ruling in bankruptcy court
As LATAM went hunting for cash to see it through bankruptcy it leaned on old friends. But when it comes time to convert the debt to equity, restoring ownership for Delta, Qatar and the Cueto family, the deal proved a bit too sweet for the US Bankruptcy Court to accept.
LATAM’s unlikely recovery funding: Qatar Airways could boost Delta’s position
LATAM’s bankruptcy proceedings are getting interesting, with competing DIP funding proposals in play. And one reportedly contains a spectacularly unexpected arrangement between vicious competitors: Qatar Airways and Delta Air Lines.
Virgin Australia to ditch twin-aisle fleet, focus on domestic and regional service
As part of its recapitalization plan Virgin Australia intends to retire its long-haul aircraft. The carrier’s five 777s and six A330s will be removed from service as it invests “in the core Virgin Australia domestic and short-haul international operation.”
Virgin Atlantic flied for bankruptcy protection today, and it mostly doesn’t matter
Virgin Atlantic filed for bankruptcy protection in the US courts on Tuesday, a move that initially sparked concerns among travelers about the future of the company. Fortunately the filing, made under Chapter 15 of the US Bankruptcy Code, is more of a procedural play than anything to be concerned about.
Long live the Queen: The Weekly Wrap
Some 747 farewells transitioning into possible electric aircraft growth. Plus an interview about the upcoming FTE/APEX Virtual Expo and lots more!
ZIM Flugsitz seeks insolvency protection
German seating manufacturer ZIM Flugsitz filed an application for debtor-in-possession insolvency proceedings with the Local Court of Constance. The company cites a “persistent and considerable decline in sales” in recent months in forcing its need for legal protections.
Global Eagle secures $80 million DIP financing in Chapter 11 bankruptcy filing
Global Eagle will restructure and recapitalize under Chapter 11 of the US Bankruptcy code. Substantially all of the company’s assets are to be acquired for $675 million, reducing total debt by approximately $475 million. The deal also includes $80 million in fresh debtor-in-possession financing to ride out the current downturn.
Time is running out for Global Eagle’s financial restructuring
Global Eagle bought itself a few extra weeks. Literally. The company missed an $11 million interest payment on 9 July but negotiated an extension to the end of the month before it will be considered in default on the loan.
LIAT looks to liquidate; can CARICOM respond?
Caribbean airline LIAT is on the brink of liquidation, according to Antigua and Barbuda Prime Minister Gaston Browne. Flights are suspended through at least 15 July 2020 and that could be enough to kill the carrier.