New Financing and Restructuring Process Ensures All Flight Schedules Remain Unchanged
Sea Star Holdings Inc., parent company for Seaborne Puerto Rico LLC, Seaborne Virgin Islands, Inc. and affiliates ("Seaborne" or "the Company"), announced the company has commenced a voluntary reorganization proceeding under Title 11 of the US Code in order to implement new financing and a sale to affiliates of Silver Airways, LLC.
The Company will continue its business without interruption, including all existing flight operations in Puerto Rico, the U.S. Virgin Islands, and throughout the Caribbean. Tickets held by customers will continue to be valid and Seaborne will be taking bookings for future travel, as normal.
Seaborne also announced that it has secured a new $4.2 million credit facility and concurrently entered into a Purchase Agreement (subject to court approval and potential overbids) to sell substantially all of its business and assets to Silver Airways. This will facilitate a combination between Seaborne and Silver Airways, creating the industry's leading regional carrier in the Caribbean, Florida, and the Bahamas.
“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 reorganization protection," said Ben Munson, Acting CEO of Seaborne Airlines. "Our day to day operations will continue as normal, and this process will be in the best interests of all of our customers and stakeholders."
Passenger service and safety will continue to be top priorities for the company. Seaborne will operate normal flight schedules and conduct business as usual, honoring all ticketed reservations and rules of the company's Contract of Carriage. The company will also maintain our codeshare partnerships that facilitate easy connections to partner airlines and our Seamiles program will remain active.