US regional carrier Silver Airways has lined up a bid of nearly $5.8 million for nearly all of its assets, after the cash-strapped airline filed an emergency motion seeking court approval for the sale.
The motion, filed in the United States Bankruptcy Court for the Southern District of Florida, requests approval of bidding procedures designed to identify the highest or best offer for Silver Airways' assets. These procedures include provisions for bid protections and the scheduling of an auction.
KIA II LLC has been designated as the “stalking horse bidder”, setting a minimum bid of $5.775 million. The stalking horse bid includes a break-up fee of 5% to cover costs if a higher bid is accepted.
“Without immediate authorisation to proceed with the sale process, Silver Airways will face irreparable harm," said Steven Rossum, CEO of Silver Airways. "This sale is crucial to maintaining the going concern and enterprise value of our business, ensuring we can continue to serve our passengers and support our employees."
The sale will exclude assets of Seaborne - a wholly owned subsidiary of Silver Airways - which operates under its own Part 121 certificate.
The court filing details that an auction is proposed to be held on May 28, 2025, with a subsequent sale hearing scheduled for June 5, 2025, to approve the transaction.
The Florida-based airline filed for Chapter 11 protection on December 30, 2024, describing the move as a step toward ensuring a "sustainable future" for its operations. The airline said that this decision will allow it to secure additional capital and undertake a financial restructuring.