Western Global Airlines announces wrap of financial restructuring

By Wendy Van Sickle

Columbus, Ohio, Dec. 4 – Western Global Airlines announced the completion of its comprehensive financial restructuring in a news release Monday evening.

As previously reported, the company’s pre-packaged Chapter 11 plan of reorganization was confirmed on Nov. 21 by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

The company said the plan received overwhelming support from all voting classes of creditors and the unanimous support of the official committee of unsecured creditors.

Under the plan, Western Global said it has materially reduced its debt by more than $460 million and infused significant new capital into the company, while preserving its workforce and relationships with customers and suppliers.

During the 100-day restructuring process, the company drew on $77.5 million of debtor in possession financing provided by its owners Jim and Sunny Neff, who also funded the equity and exit financing, and waived nearly $100 million of secured and unsecured prepetition debt held by them in order to provide recovery to all creditors.

The Estero, Fla.-based provider of contracted air cargo transportation services filed bankruptcy on Aug. 7 under Chapter 11 case number 23-11093.

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