Posted on: 12 January 2018
Seaborne Airlines has signed an agreement to be acquired by Silver Airways.
Sea Star Holdings Inc., parent company of Seaborne Puerto Rico LLC and Seaborne Virgin Islands Inc., has confirmed the company has commenced voluntary re-organisation proceedings under Title 11 of the US Code to implement new financing and a sale to affiliates of Silver Airways, LLC.
The company will continue business without interruption, including all existing flight operations in Puerto Rico, the US Virgin Islands, and throughout the Caribbean. Customers’ tickets will continue to be valid and Seaborne will be taking bookings for future travel as normal.
The Caribbean-based regional airline has secured a US$4.2 million credit facility and entered into a purchase agreement (subject to court approval and potential overbids) to sell substantially all of its business and assets to Silver Airways.
This will facilitate a combination between Seaborne and Silver, creating what it calls “the industry’s leading regional carrier in the Caribbean, Florida, and the Bahamas.”
Ben Munson, acting CEO of Seaborne Airlines, said: “While the company’s business has enjoyed a remarkable recovery since the 2017 hurricanes, the financial stress caused during the recovery period coupled with legacy liabilities have made it necessary to seek re-organisation protection.” He added: “Our day-to-day operations will continue as normal, and this process will be in the best interests of all of our customers and stakeholders.”
In August Silver Airways, which flies to the Bahamas and within Florida, confirmed it was talking to Seabourne Airlines, exploring commercial co-operation including potentially a combination “in support of its long-term goal to become a major US airline.”
Seaborne will continue operating normal flight schedules, honouring all ticketed reservations and rules of the company’s contract of carriage. It will also maintain codeshare partnerships that facilitate easy connections to partner airlines.