After wrapping up 2024 with a sudden bankruptcy announcement, low-cost Florida carrier Silver Airways has had a rough time trying to get investors to spot its potential and help get it back on the road to profitability.
While a government trustee assigned to oversee the bankruptcy had earlier asked the court to skip bankruptcy and go straight to liquidation over what he claimed was “substantial and continuous loss”, Southern District of Florida Judge Peter Russin gave Silver until the end of June to file a bankruptcy plan after Greenwich, Connecticut-based lender KIA II gave it $5.5 million to continue daily operations.
In the months following the bankruptcy, Silver lost the right to fly into the British Caribbean territory of Anguilla and its hub at Orlando International Airport (MCO) over unpaid debts and airport fees.
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New York investment firm gives Silver Airways $5.8M offer that leaves lenders worried
In a May 7 update hearing in Florida bankruptcy court, Silver announced that it now also has a $5.775 million purchase offer from Argentum Acquisition Co.; the New York investment firm has a history of taking on troubled airlines.
As a stalking horse bid, this is the first and lowest reserve offer set in advance of any future auction. While intended as the minimum price and starting point for any future bidders, a low stalking horse offer often sets the scene for how much the market thinks a carrier is worth — in a court filing,
Silver disclosed that a separate unidentified buyer had signed a letter of intent to acquire Silver for $4 million if it sells for that much.
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At the May 7 hearing, Judge Russin expressed concerns that such a low number would leave multiple creditors hanging. At the time of bankruptcy, Silver Airways racked up more than $500 million in debts to aircraft lessors, airports and even entire jurisdictions. In February, the City of Tallahassee filed a motion against Silver on behalf of Tallahassee International Airport (TLH).
Silver Airways announced that it was filing for bankruptcy in December 2024.
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‘Applying the bankruptcy code as it was intended to be applied’
“I am pretty well set against the notion that a sale should be approved where [claims] are not paid in full,” Russin said. “Lots of judges have taken similar positions. It’s a matter of applying the bankruptcy code as it was intended to be applied.”
The court also heard Barbra Parlin, an attorney representing several of the creditors, question how such a sale would help pay down Silver’s debts.
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In December 2024, Silver said that it anticipated completing the bankruptcy process in the first quarter of 2025. With that deadline now come and gone, Silver continues to insist that it will be able to restructure successfully.
“To date, Silver’s restructuring has been going exceedingly well, but unfortunately, Dutch aircraft leasing company TrueNoord abruptly reversed its previously stated position and immediately required Silver to pay millions of dollars to retain the airplanes we have been flying for years,” an airline representative told TheStreet in March 2025 after the airline was forced to pull its Orlando service.
In May 2025, Silver continues to run flights out of Florida cities such as Tampa, Fort Lauderdale and Tallahassee to Caribbean destinations like the Bahamas, St. Maarten and St. Kitts.
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