Global Aviation, headquartered in Peachtree City, has announced that its interim financing for bankruptcy restructuring has been approved by the U.S. Bankruptcy Court for the Eastern District of new York.
The plan includes three funding phases of $15 million each, with the first available immediately and the other two upon achieving certain milestones in the debtor-in-possession agreement, which includes labor negotiations and a fleet restructuring, the company said.
The financing will be used to allow Global Aviation to continue to meet its working capital needs, the company said in a press release.
The financing is being provided by certain holders of the company’s first lien notes in exchange for additional liens on certain assets, the company said.
“The Court’s interim approval of our DIP financing is another step toward positioning Global to execute on its goals of restructuring fleet and labor costs and aligning capital structure with the size of the Company,” said Rob Binns, Chairman and CEO.
Global Aviation will also be allowed to continue its use of cash collateral, the company said.
Global Aviation is the parent company of North American Airlines and World Airways, and as such is the largest commercial provider of charter air transportation for the U.S. military and is a major provider of worldwide commercial global passenger charger flights.
North American Airlines, founded in 1989 and based in Jamaica, N.Y., operates passenger charter flights using B757-200ER and B767-300ER aircraft. World Airways, founded in 1948 and based in Peachtree City, Ga., operates cargo and passenger charter flights using B747-400 and MD-11 aircraft.
