World Airways and North American Airlines Bankruptcy
Feb 5 (Reuters) - Global Aviation Holdings Inc , the largest commercial provider of charter air transportation for the U.S. military, filed for Chapter 11 bankruptcy to achieve "industry competitiveness" by cutting costs and debt load.
"The company needs to complete its comprehensive restructuring due to having too large a fleet, labor costs that exceed industry standards given the current global economic environment, and the necessity to align the capital structure with the size of the company," Chief Executive Robert Binns said in a statement.
During the restructuring, the company said it will continue to operate as normal, without interruption. It also filed motions on Sunday with the court seeking interim relief that will ensure its ability to continue all of its normal operations.
"We are committed to working as quickly and efficiently as possible to appropriately restructure Global so that it can emerge from Chapter 11 as a strong company, well-positioned to compete effectively in the marketplace," Binns said.
The company said that vendor and supplier invoices incurred prior to the commencement of the Chapter 11 case that have not been paid will be resolved through the plan of reorganization, which requires court approval and is yet to be submitted.
Global, through its subsidiaries World Airways and North American Airlines, is the largest provider of military transport services. World Airways was founded in 1948.
The case is Global Aviation Holdings, Case No. 12-4078, U.S. Bankruptcy Court, Eastern District of New York.
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It used to be that filing for Bankruptcy meant that you were broke and couldn't carry on. Now it seems to be," We don't want to pay our bills or fulfill our obligations anymore, even though we have the money to do it "
Atlast Shrugged