Silver Airways Ceases Operations Amid Bankruptcy Struggles
Silver Airways, a regional airline based in South Florida, announced its closure on Wednesday after a potential buyer withdrew its acquisition offer amid the company’s Chapter 11 bankruptcy proceedings. CEO Steven Rossum informed about 350 employees via email on Tuesday, stating that after months of financial challenges, the airline’s journey had come to an end. He indicated that Wexford Capital, the company’s lender, would no longer support Silver’s operations or retain most of its staff.
Passengers were left stranded across five Florida cities and 11 locations in the Bahamas and the Caribbean, with no immediate plans disclosed for their accommodations. Following the airline’s financial struggles, both Silver and its affiliated carrier, Seaborne Airlines, filed for Chapter 11 on December 30. Silver’s debts had escalated to over $400 million when key funding sources were cut off, and creditors began demanding overdue payments.
Recent auction efforts to secure new ownership also fell short, as no qualified bids emerged to challenge a $5.775 million offer from Wexford’s affiliate, Argentum Acquisition. Since the Chapter 11 filing, Silver’s operational capacity had significantly curtailed, with its fleet reduced to eight aircraft and serving limited routes, including Fort Lauderdale and destinations in the Caribbean.
The operational future of Seaborne, which continues to fly between the U.S. Virgin Islands, remains intact despite Silver’s shutdown. As the situation develops, updates will be provided to assist affected travelers.
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