RavnAir’s CEO said in a memo to all staff today that the company will seek to reorganize under Chapter 11 bankruptcy rules.
Due to the loss of revenue created by the COVID-19 pandemic, the company parked all 72 of its aircraft today.
“Due to our critical need for additional funds, our company has also made the necessary decision to seek Chapter 11 protection in order to obtain immediate Debtor-in-Possession (DIP) funding. Chapter 11 gives us the ability to “hit pause” while we seek federal grants and other sources of financial assistance that will allow us to weather the Coronavirus pandemic and emerge successfully once it has passed,” CEO Dave Pflieger wrote.
“How long we must wait is uncertain, but I want to express my deepest gratitude to: our State and Federal officials, in particular Senator Sullivan, Senator Murkowski, and Congressman Young; our owners and lenders; and most importantly, everyone who is a part of our team at RavnAir Group. I am grateful for everything being done to help us preserve and protect the vital air service, jobs, and support that our company provides to over 115 separate communities and so many other residents throughout Alaska,” he wrote.
“Please know that we will continue to do everything possible to ensure our airline gets back in the air very soon. For now, I hope you, your families, and your loved ones all remain safe and healthy during these incredibly trying and difficult times,” Pflieger wrote in a note to all staff.
Earlier from today: