Southern Air's Plan Of Reorganization Confirmed By Bankruptcy Court
NORWALK, Conn., March 14, 2013 /PRNewswire/ -- Southern Air Holdings, Inc. today announced that it has received confirmation of its "pre-arranged" Plan of Reorganization (Plan) from the U.S. Bankruptcy Court in Wilmington, Delaware, which has been overseeing the Company's Chapter 11 proceedings following its voluntary filing on September 28, 2012. The Plan received substantial support from key secured creditors as well as unsecured creditors. The confirmation clears the way for Southern Air to emerge from its court-supervised financial restructuring as expected, within the next few weeks.
Daniel J. McHugh, Southern Air CEO, said, "We are very pleased to receive court approval of our Plan of Reorganization and hope to exit Chapter 11 in just a matter of weeks. This was a critical part of our overall transformation. We have used this process to dramatically change and improve our capital structure, substantially reduce our debt and other legacy costs, strengthen our balance sheet, and enhance our competitiveness with new financial flexibility.
"We will emerge as a well capitalized carrier delivering safe, high quality air cargo services. As part of our strategic transformation, we have realigned our operations and capabilities and transitioned to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. Our operations and corporate activities are now in Northern Kentucky (the Cincinnati airport) near our largest hub of activity where we are even better able to satisfy the needs of our customers and grow our business for the long term to benefit our business partners and employees for years to come.
"It is thanks to the hard work and dedication of the Southern Air team and the support of our lenders and business partners that we have been able to move through this process successfully, fulfilling customer requirements as scheduled and providing high quality air cargo services without interruption. As a result of our transformation, Southern Air is better positioned for the future both financially and operationally to grow profitably as an air cargo industry leader," concluded McHugh.
About Southern Air
Southern Air was founded in 1947 as a high quality global cargo carrier specializing in international air cargo services. Over the past eight decades Southern Air has served a blue-chip customer base that includes some of the world's largest intercontinental air cargo carriers and government agencies. Southern Air is the first ACMI operator in the world to operate the fuel efficient Boeing 777 Freighter and currently operates four such aircraft on an around-the-world basis for global express delivery giant DHL. Southern Air operates 747-400 aircraft, and is a premier provider of safe, fuel efficient, intercontinental widebody ACMI services.
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SOURCE Southern Air Holdings, Inc.