Western Global Airlines, which operates chartered cargo jets for the U.S. military and other customers, on Monday filed for Chapter 11 bankruptcy protection and announced it will restructure with the help of $77 million in financing from creditors, including bondholders with more than 85% of the outstanding senior unsecured notes.
A bankruptcy restructuring has been expected for weeks because of collapsing revenues, a heavy debt load and the decision by credit rating agencies to pull their coverage over the company’s lack of financial transparency. Bloomberg previously reported that Estero, Florida-based Western Global Airlines was arranging debtor-in-possession financing to support ongoing operations under a court-approved bankruptcy plan.
