ESTERO, Fla., Aug. 7, 2023 /PRNewswire/ -- Western Global Airlines ("WGA" or the "Company"), a US FAA 121 cargo airline, today announced that the Company has reached an agreement with key financial stakeholders, including existing bondholders holding more than 85% of the outstanding senior unsecured notes due in 2025 (the "Ad Hoc Group"), in support of a reorganization plan to stabilize the business and its financial future, with WGA's founder, Jim Neff, reinvesting alongside bondholders and other financial partners. This agreement ensures that WGA continues to operate without interruption and meets customer needs with safe, effective, on-time service delivery. To implement the plan, WGA has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company enters the process with a commitment for more than $77 million of debtor-in possession ("DIP") financing from Jim Neff and certain members of the Ad Hoc Group (the "Plan Investors") that will support the Company's operations through the Chapter 11 cases and provide WGA with a strong balance sheet after it has emerged to even better serve its customers.
Read MoreWGA, its CEO and Founder Jim Neff, and its management team are committed to acting in the best interests of the Company and its stakeholders. After 10 years of profitable operations and successful growth, the Company is currently navigating financial challenges driven by unforeseen industry-wide factors, including the conflict in the Ukraine, the weakened global economy and particularly air cargo demand, spiraling costs, and the recurrence of COVID-19 pandemic in China, which disproportionately impacted WGA and its customers. Notably, up until the end of 2022, WGA delivered profitable operating results every year since its founding in 2013.
Read MoreWe are pleased to announce the firm order of two Boeing 777 Freighters. Additionally, the order includes the option of a third 777 with rights to purchase two additional freighters. The first planned delivery is scheduled for August 2024 with the second delivery expected in September 2024.
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