Seaborne Airlines files for bankruptcy protection

Troubled Puerto Rico carrier Seaborne Airlines has been purchased by Florida-based Silver Airways.

The Caribbean airline filed for bankruptcy protection on 8 January. The financial woes and takeover is not expected to affect the day-to-day operations of the company at this stage.

“As Seaborne filed for reorganisation under Chapter 11, Silver Airways entered into an agreement to acquire Seaborne,” Silver chief executive Steve Rossum told FlightGlobal.

“This will allow us to fully capture the benefits of Seaborne’s business and its people, including the synergies of our Saab fleets, Seaborne’s route network and our respective airline partners, and will allow us to continuing growing.”

Silver is owned by private equity company Versa Capital Management. The acquisition of the stricken airline remains subject to court approval and other bids, Seaborne has said.

Ben Mumson, acting CEO of Seaborne, is quoted on as saying: “While the company’s business has enjoyed a remarkable recovery since the 2017 hurricanes, the financial stress caused during the recovery period coupled with legacy liabilities have made it necessary to seek reorganisation protection.”

Dominica is one example of a Caribbean island that Seaborne flew to but was hit hard September’s natural disasters.

Seaborne’s parent company, Delaware-based Sea Star Holdings, filed the bankruptcy paperwork in United States Bankruptcy Court for the District of Delaware.