The Virgin Islands Port Authority (VIPA) might be forced to write off over USD1 million debt owed by Seaborne Airlines (BB, San Juan Luis Muñoz Marin) after the airline was acquired by Silver Airways (3M, Fort Lauderdale International), The St. Croix Source has reported.

"We did send legal counsel to represent the Port Authority at the bankruptcy hearings, but we were not a secured creditor. So, those negotiations didn’t go in our favour. We might have to write off the debt, but we can’t go after Silver because they acquired the assets at auction," VIPA Executive Director Damian Cartwright said.

Seaborne Airlines, which had been originally headquartered on the US Virgin Islands prior to relocating to Puerto Rico, declared bankruptcy under Chapter 11 in January 2018. It was subsequently fully acquired by Silver Airways.

As a part of the transaction, Silver Airways acquired Seaborne Airlines' exclusive harbour lease contract with the VIPA. The lease is ongoing and used for the carrier's float-equipped DHC-6-300 operations. Cartwright said that the VIPA will raise the issue of Seaborne Airlines' debt once the lease renewal negotiations with Silver Airways commence.

Seaborne Airlines operates two DHC-6-300s (wet-leased from Kenn Borek Air (KBA, Calgary)) and nine Saab 340Bs.