FINE AIR FILES FOR BANKRUPTCY PROTECTION
Fine Air Service Inc., the parent company of Miami-based all-cargo airlines Fine Air and Arrow Air, has filed for bankruptcy protection in the Southern District of Florida.
The airline said it will continue to operate its full network of freighter flights to Latin America and the Caribbean while it seeks to restructure its debt with creditors.
Fine Air cited high fuel prices and weaker traffic to slumping Latin American nations as the major reasons for its financial difficulties. The company had been trying to restructure its debt out of court since notifying creditors it would miss an interest payment in July.
“The company regrets that it was unable to reach a restructuring agreement with our bondholders. This step is now necessary to protect our company, our employees, our customers and our creditors so that service is not interrupted during this process of reorganization,” said Barry H. Fine, Fine Air’s president and chief executive officer.
Fine Air said it wants to obtain the necessary financial liquidity to implement a long-term solution to its current financial challenges. The airline has asked the bankruptcy court to approve a $55 million bridge loan from Banc of America.