Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Global Aviation Holdings Files Fourth Bankruptcy Case
Author: Joel R. Glucksman
Date: November 26, 2013
Key Contacts
Back
Global Aviation Holdings may have made history after announcing on Nov. 12 its plans to file for protection under Chapter 11 of the bankruptcy law for the fourth time since its inception.
The company, which is the largest commercial provider of charter air services to the U.S. military, filed bankruptcy proceedings with the U.S. Bankruptcy Court in Wilmington, Del., and cited government spending cutbacks as the most recent cause of its financial insolvency. In paperwork filed with court, Global Aviation listed both assets and liabilities of as much as $1 billion, according to Bloomberg.
The firm and its subsidiaries – two of which are World Airways and North American Airlines – said that bankruptcy protection would enable them to strengthen their balance sheets and secure a measure of financial flexibility while Global reorganizes.
“We intend to use the reorganization process to help implement our plan to lower costs, stabilize our businesses, grow revenue and diversify our product lines,” said CEO John Graber. “We have taken a number of steps to improve our operations over the past few months and we were making great progress; however, the continued worldwide downturn in commercial freight markets coupled with the military’s decision to immediately curtail its cargo expansion flying has made it necessary for us to undertake this court-supervised reorganization.”
The company has already secured debtor-in-possession financing from its first lien holders, and said it plans to maintain its operations during the reorganization process. Global Aviation Holdings also petitioned the court for permission to continue paying wages and health benefits to employees during the bankruptcy process. However, the company may be forced to slash its workforce by as much as 16 percent, Bloomberg noted.
The firm sought bankruptcy protection for the first time in 2004, then again in 2006 and in 2012, in the Eastern District of New York, according to Reuters.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
When Does a Business Need a Corporate Attorney?
A corporate attorney advises businesses on formation, ownership, governance, contracts, transactions, compliance, disputes, and the legal risks that arise as a company grows. The role is not limited to filing documents or reviewing agreements. A corporate attorney helps a business understand when a commercial decision has legal consequences, how to structure that decision properly, and […]
Author: Scarinci Hollenbeck, LLC
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.