iAero Airways (WQ, Greensboro Piedmont Triad International) parent iAero Group Parent LLC has filed for voluntary Chapter 11 bankruptcy protection in the US Bankruptcy Court of the Southern District of Florida (Miami Division) but will continue operations within senior lenders agreeing to debtor-in-possession (DIP) financing of about USD22.5 million.
The B2B passenger charter and cargo carrier, formerly known as Swift Air (United States of America), on September 19 said the move will allow the implementation of a restructuring plan and ensure the group's long-term viability. The company has the support of its senior secured lenders in the form of an approved restructuring support agreement and a commitment for a senior secured super-priority delayed draw DIP financing credit facility in an aggregate amount of up to USD22,503,876.
iAero intends to maintain normal operations throughout the process, including continuing all customer flights as scheduled.
"After careful consideration, our board determined it was necessary to take this step now to address our financial strength and restructure certain of our contractual relationships and legacy balance sheet liabilities. We believe this Chapter 11 filing provides the most effective means to restructure with minimal impact on the business and our customers and we are committed to moving through this process as expeditiously as possible so the company can emerge from Chapter 11 well-positioned to maximise our long-term prospects for the benefit of our customers, employees and other stakeholders,” iAero Airways President Timothy Rainey said in a statement.
"The company is optimistic about its long-term future upon emergence as it stabilises its businesses following a global pandemic that placed unprecedented pressures on the airline industry and significantly deleverages its balance sheet during these Chapter 11 cases," he added.
The iAero Group is supported by King & Spalding LLP and Berger Singerman LLP as legal counsel, Jefferies LLC as investment bankers, and Alix Partners which will provide interim management services.
The companies in the group affected include:
- iAero Group Holdco 6 LLC,
- iAero Group Parent LLC,
- iAero Group Intermediate Inc,
- iAero Group Bidco Inc.,
- AeroTech Miami Inc. d/b/a iAero Tech,
- New Swift Air Holdings, L.L.C.,
- Swift Air, LLC d/b/a iAero Airways,
- Swift Air Travel, LLC,
- iAero Thrust LLC.,
- AeroThrust Holdings Leasing, LLC,
- AeroThrust Holdings Leasing, LLC,
- iAero Thrust Engine Test Center, LLC,
- JAM Aerospace Parts, LLC,
- AeroThrust Delta PBH, LLC,
- iAero Thrust Holdings Aircraft and Engine Leasing, LLC,
- iAero 11 Investments LLC, and
- iAero 11B Investments LLC.
iAero Airways was founded in 2019 through the acquisition of Swift Air. It provides charter services, ACMI leasing, and cargo flights for global courier companies. According to the ch-aviation fleets module, its operates 44 aircraft including eight B737-300s, one B737-300(F), eighteen B737-400s, two B737-400(SF)s, five B737-800s, four B737-800(SF)s, five -BDSFs, and one B767-300ER.
