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In the ongoing bankruptcy proceedings involving Silver Airways and Seaborne Airlines, the United States trustee Mary Ida Townson has filed a motion to dismiss the Chapter 11 bankruptcy protection case. The motion, submitted on April 10 to the United States Bankruptcy Court for the Southern District of Florida, highlights the carriers' struggle to achieve positive cash flow and argues they have presented inflated financial projections beyond feasible expectations.
Multiple claims have been submitted against Silver Airways by various entities, including the City of Tallahassee, Hillsborough County Aviation Authority, and StandardAero. The trustee suggests either dismissing the case or converting it into a Chapter 7 liquidation bankruptcy but advocates for dismissal, citing 11 U.S. Code § 1112.
Ascend, a financial advisory firm, defines Chapter 7 bankruptcy as liquidation bankruptcy, contrasting it with financial restructuring under Chapter 11. The trustee argues, "There is a substantial and continuing loss to the estate shown by the Debtors’ net negative profits and negative cash flow." This includes net losses amounting to $467,000 in February 2025 and $1,221,000 in the first two weeks of March 2025, with projected losses of $1,243,000 for the latter half of March 2025.
