Arrow Air Inc., Cargo Carrier, Files for Bankruptcy for Second Time

Arrow Air Inc., a cargo carrier, filed for bankruptcy after shutting down all scheduled service operations and ceased flying.

The company listed debt of as much as $500 million and assets of as much as $50 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Miami where it is based. Arrow Air Holdings Corp. also sought protection.

“After exhausting all viable potential purchasers and investors, the debtors made the difficult decision to cease scheduled service operations in order to preserve the existing value of their estates,” Doug Yakola, chief restructuring officer of Arrow Air, said in court papers.

Arrow and Arrow Air Holdings Corp. emerged from bankruptcy in June 2004 through a confirmed plan of reorganization.

Arrow is “maintaining the airline operating authorities and the potential for undertaking charter flying in the event a potential purchaser can be consummated in Chapter 11,” Yakola said.

The case is In re Arrow Air Inc., 10-28831, U.S. Bankruptcy Court, Southern District of Florida (Miami).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net

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