Western Global Airlines Reaches Bankruptcy Financing Deal

MD-11 Western Global

Florida-headquartered Western Global Airlines (WGA) has taken a crucial step towards addressing its financial position by reaching a bankruptcy financing deal. The cargo carrier has secured $77.3 million in bankruptcy financing at a 9% rate over the Secured Overnight Financing Rate. This funding will allow WGA to continue its operations while under Chapter 11 protection. The company is expected to seek court protection from creditors in the near future.

To keep the company operational during restructuring, CEO Jim Neff purchased the outstanding loans held by WGA’s senior secured lenders on June 29.

WGA released a statement on July 19, explaining that it has been facing financial challenges caused by various industry-wide factors, including the conflict in Ukraine, a weakened global economy, reduced air cargo demand, rising costs, and the recurrence of the Covid-19 pandemic in China. Despite these challenges, WGA operated profitably and experienced successful growth over the past ten years, delivering positive operating results each year since its establishment in 2013.

Earlier reports in June indicated that WGA was in discussions with creditors and considering bankruptcy due to a liquidity shortage. The bankruptcy financing deal will provide the company with the necessary resources to navigate through its financial difficulties and pursue a sustainable path forward.

Sources: AirGuide Business airguide.info, msn.com, Western Global Airlines